China is no longer the world's main oil consumer.

The peak demand for oil imports to China could be reached next year

Demand for oil imports to China may peak as soon as next year, as the demand for fuel for transportation declines. China has been the world's largest oil consumer for decades, but its shift to electric vehicles is significantly impacting the oil market.

In July, sales of electric and hybrid vehicles in China surpassed sales of combustion engine cars. This has reduced the need for oil imports to produce gasoline. Additionally, overall oil consumption in China is growing more slowly due to prolonged economic weakness.

Analysts predict that the demand for transportation fuel began to decline this year, earlier than expected. Therefore, China's oil imports are nearing their peak, and further consumption will be supported by the growth of the petrochemical sector.

'The oil industry is beginning to realize this,' said Martijn Rats, chief commodity strategist at Morgan Stanley.

Growth in oil demand in China is expected to be lower, about 100,000-200,000 barrels per day annually. This is mainly due to the use of jet fuel and the development of the petrochemical industry. Such growth is significantly lower than long-term trends.