Rapid growth in electric truck sales in China reduces demand for oil products — Bloomberg

China's active transport electrification is raising market concerns over the future demand for oil and refined products. According to Bloomberg data, electric trucks accounted for 22% of light-duty commercial vehicle sales in China in April. The year before, this figure was only 13%. The growth was even more pronounced among larger vehicles, surging from 5% to 15%. The government is actively supporting companies' transition to more environmentally friendly types of transport, further accelerating the trend.

As China is one of the world’s largest oil consumers, its declining demand is putting significant pressure on the global oil market. Investors are growing increasingly wary of the widening gap between fuel supply and demand, compounded by pessimistic forecasts, Bloomberg reports.

According to Amy Sun of GL Consulting, more than 70% of diesel fuel consumption in China is tied up in road freight and manufacturing. However, by 2030, demand for this type of fuel could drop by 26% compared to 2024 levels, the firm's analyst says. Meanwhile, electric truck sales could account for 50% of the market within the next few years, Bloomberg adds.