The International Energy Agency (IEA) and the U.S. Energy Information Administration (EIA) reported that this year, China has slowed down the use of hydrocarbons.
According to these organizations, the market for fossil fuels will only see an increase of 1.1%, which amounts to just about 180,000 barrels per day.
This is being felt globally in the oil market because China has been responsible for its growth for over 50 years.
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The analysis by the aforementioned agencies indicated that the slowdown is primarily due to reduced construction activity and an increase in electromobility.
Growth in Electromobility
Beijing leads in the development of clean energy, and when it comes to electric cars, sales have grown by 50%. This trend is expected to continue, leading to a decline in the use of fossil fuels as well as their prices.
According to an analysis from Econoticias, the development of the Chinese electric mobility market will play a key role in the decline of the oil industry.
Furthermore, the use of electricity as an energy source is expanding into other areas, and it appears that China will be a leader in this transition.
Electromobility is growing in many countries, and China is where the largest number of these vehicles—both hybrids and electric—are manufactured, both for domestic consumption and for export. According to recent data, they sold 1.43 million units in October, a number that exceeds what was sold in Spain throughout all of 2023.
With the growth in sales of these vehicles, the decline in oil demand is expected to be around 400,000 barrels per day just this year.
