The head of one of China’s top oil firms said demand growth will be curbed the rest of this year, and raised the prospect that it may have already peaked forever.
(Bloomberg) — The head of one of China’s top oil firms said demand growth will be curbed the rest of this year, and raised the prospect that it may have already peaked forever.
Poorer-than-expected economic data for the second quarter will curb oil and gas demand growth for the rest of the year, Cnooc Ltd. Chief Executive Officer Zhou Xinhuai said on a conference call Friday. Meanwhile, forecasts that China’s oil demand will hit its all-time high this year have gained wide industry consensus, he said.
Zhou didn’t elaborate on the reasons why oil demand might top out this year. Researchers at China National Petroleum Corp., Cnooc’s larger sister firm, said in June it doesn’t expect a consumption to crest until 2030. The International Energy Agency in a June report said it expected use to grow at least through 2028.
Oil bulls started the year with optimism that Chinese demand would rebound strongly as the nations threw off the shackles of three years of Covid restrictions. Those hopes have faded amid a broader economic stagnation and deepening property crisis. A boom in electric vehicles is also starting to have a visible impact on gasoline sales, with top refiner Sinopec earlier this month saying it now expects demand for the fuel to peak this year from its previous forecast of 2025.
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