CHINA-ECONOMY: CHINA'S OIL DEMAND

The growth in oil demand next year is expected to be driven by OECD Europe and China. China’s oil demand rose by 690,000 BPD in July, marking a 6 percent year-over-year (YOY) increase. China’s total oil demand reached 11.67 million BPD in July. Year-to-date data indicates an average growth of 550,000 BPD, more than double the 210,000 BPD growth recorded during the same period in 2016. China’s gasoline demand was higher by around 0.10 million BPD YOY, driven by robust sports utility vehicle (SUV) sales, which were around 17 percent higher than one year ago. China’s overall vehicle sales in July rose by 4 percent YOY, with total sales reaching 1.7 million units.The numbers from China are interesting given the constant refrain of weakening Chinese demand.China may indeed join the ranks of countries banning fossil fuel vehicles, but China is a long way from reining in its oil consumption growth.







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