China: Trade Tensions and Structural Shifts Hit Energy Demand

China’s macroeconomic outlook is growing gloomier at a time of major internal structural change, with key energy market implications. Trade tensions, its flagging property sector and slowing infrastructure investment are undermining China’s traditional economic foundations, while its low carbon technology prowess cannot cover these losses.

In this concise report, Energy Intelligence outlines how these dynamics are weighing heavily on oil demand, as reduced freight demand, rising EV adoption and the slowing economy take their toll, with petrochemical feedstock usage unable to pick up the slack. Accordingly, we see Chinese oil demand growth barely topping 100,000 b/d this year and next. While natural gas demand prospects are brighter, they are not immune from these trends.