By Alexander Miller, consultant in energy markets. Eurasia Business News, August 18, 2025. Article n°1721

China’s oil demand showed signs of picking up in July. The amount of crude oil going into storage in China declined significantly from 1.42 million barrels per day in June to about 530,000 barrels per day in July, indicating increased consumption and reduced stockpiling. Chinese refinery runs rose to 14.85 million barrels per day in July, an 8.9% increase compared to July 2024, although this represented a slight 2% drop from June 2025. Refinery utilization rates increased both month-over-month and year-over-year, reinforcing the impression of stronger oil demand.

China has been building its crude oil inventories since March 2025, which had boosted crude imports earlier in the year. However, the recent slowdown in inventory buildup suggests demand is strengthening. Despite short-term improvements, long-term demand growth in China is expected to slow due to factors like the rise of electric vehicles, government subsidies for cleaner transportation, LNG trucks, and a plateauing in car ownership.

Analysts project that China’s oil demand growth may peak before 2030, with India potentially taking over as the top crude oil demand driver in Asia.

Overall, July data points to an uptick in China’s oil demand as refinery activity grows and storage inflows slow, reflecting the largest oil consumer adjusting its consumption patterns amid broader economic and energy transition trends.

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© Copyright 2025 – Eurasia Business News. Article no. 1721