China National Petroleum Corp. cut its forecast for the nation’s oil demand this year, as a post-Covid economic recovery continues to disappoint.
(Bloomberg) — China National Petroleum Corp. cut its forecast for the nation’s oil demand this year, as a post-Covid economic recovery continues to disappoint.
China’s demand is expected to climb 3.5% to 740 million tons, Wang Lining, a senior oil researcher with CNPC’s Economics and Technology Research Institute, said at a conference in Beijing on Tuesday. That’s below a March forecast for 5.1% growth in 2023.
Disappointing economic data has dashed the hopes of traders betting that a rebound in China — after the world’s top oil importer abandoned its Covid Zero policy late last year — would drive demand growth. Still, Chinese crude imports are set to climb to 540 million tons this year, close to 2020’s record, said Wang, who expects the country’s oil demand to peak in 2030.
Read More: Global Oil Market Faces Reality Check as China’s Rebound Falters
CNPC, China’s biggest oil and gas producer, expects gasoline demand to likely exceed 2019 levels, while diesel and kerosene use will be within 5% of pre-Covid demand. The use of transport fuels will peak in 2025, with diesel use falling from 177 million tons in that year to 133 million tons in 2035 as trucks switch to hydrogen fuel.
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