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China’s Diesel Demand Fell in June by Most in 3 Years: EIA

OIL PRODUCTS

China’s diesel demand fell 11% on the year to 3.9m b/d in June, the largest percentage drop since July 2021, the EIA said, cited by Reuters.

  • China’s sluggish oil demand has put pressure on oil prices, posing a key concern for those that believed Beijing would be a key growth driver.
  • OPEC has also lowered its 2024 oil demand forecast citing softer demand outlooks from China. Meanwhile, the IEA cut its 2025 forecast also citing China.
  • Diesel consumption reached an all time high in China in 2023, but demand has been dropping since Q2 due to an ailing property sector slowing economic growth and LNG replacing diesel for trucking fuel.
  • LNG truck sales were up 307% to 152k in 2023 and FGE estimates that LNG trucks will displace 110k-120k b/d of diesel in 2024 and 2025.

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