The head of one of China’s top oil companies said demand growth will slow for the rest of this year and raised the possibility that it may have already peaked for good.
Poorer-than-expected economic data for the second quarter will dampen oil and gas demand growth for the rest of the year, Cnooc Ltd. Chief Executive Officer Zhou Xinhuai said on a conference call on Friday . Meanwhile, forecasts that China’s oil demand will reach an all-time high this year have garnered broad industry consensus, he said.
Zhou did not explain the reasons why oil demand could exceed this year. Researchers at China National Petroleum Corp., Cnooc’s larger sister company, said in June that it did not expect consumption to grow until 2030. The International Energy Agency in a June report said it expected use will grow until at least 2028.
Oil touched off the year on optimism that Chinese demand would rebound strongly as nations threw off the shackles of three years of Covid restrictions. Those hopes have faded amid broader economic stagnation and a deepening housing crisis. A boom in electric vehicles is also starting to have a visible impact on gasoline sales, with major refiner Sinopec earlier this month now expecting demand for the fuel to peak this year from its previous forecast of 2025 .
