China's Waning Appetite For Oil Is Keeping Emissions In Check

The millions of Chinese drivers who turned to charging stations over gas pumps as the Iran War drove up fuel prices have helped shift the country's climate trajectory. China's oil consumption fell 9% year-on-year in the second quarter of 2026, driven by a 16% slump in the transport sector, according to a report from the Centre for Research on Energy and Clean Air. Crude oil processing dropped 11%. Electric vehicles were a major beneficiary as gasoline and diesel became more expensive.Although coal use at power stations continued to rise, the decline in oil demand helped trim total emissions by 1% - the first time that oil rather than coal has been responsible for a drop in China, CREA said."The rise in oil prices has caused a stronger shift in China's transportation sector than anyone anticipated, with EV deployment and use accelerating from an already high base," said Lauri Myllyvirta, lead analyst at CREA. "This trend is unlikely to be reversed."The government's drive to electrify the economy is upending calculations on energy demand. The chairman of state-owned Sinopec, China's top refiner, said last week it's very likely that the country's oil consumption peaked last year, which would be five years ahead of target.The shift is significant. If the marginal drop in emissions last year can be sustained, it would put Beijing well ahead of its commitment to peak carbon before 2030. Electric heavy-duty trucks in particular are having a breakout year as elevated diesel prices drive a sales boom.The total number of EVs grew by a third in the second quarter, while charging volumes increased by 60%. The discrepancy indicates that EVs already on the road were used much more than before "with plug-in hybrid drivers likely favouring electricity over fuel," CREA said.In the first half, the volume of oil displaced by EVs in China exceeded the UK's total oil consumption over six months, according to CREA.On the WireWith private companies on the cusp of signing a series of deals that will put Venezuela on pace to rapidly expand its crude output, US Energy Secretary Chris Wright said that China won't have any debt claims to the revenue from new production.The presidents of Russia and China discussed the possibility of trilateral talks with Donald Trump at the APEC summit this year, according to the Kremlin's foreign policy aide, in what would be an unprecedented meeting between the leaders of the world's three biggest nuclear powers.Treasury Secretary Scott Bessent said China prevented the Group of 20 from issuing a joint communique after a gathering of finance and central bank chiefs this week due to a dispute over its giant trade surplus.(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)