China's Crude Oil Demand Expected to Peak This Year

China's crude oil demand is expected to peak this year, according to executives from the country's largest oil firm. Reductions in transport fuel use are projected to outweigh gains in petrochemical demand. The shift stems from Beijing's push to expand renewable energy and increase electric vehicle adoption.

Officials said the country is now the world's largest producer and user of electric vehicles.

Domestic crude demand is estimated at 750 million to 800 million tonnes per year. Refining capacity stands at 900 million to 1 billion tonnes, creating persistent overcapacity. "Domestic refining capacity is undoubtedly excessive," said the chief economist of the CNPC Economics and Technology Research Institute.

Disruptions in the Strait of Hormuz have reshaped global supply and demand this year. The market moved from an expected surplus into a supply deficit.