China’s EV transition could drop oil prices, critics warn

The electrification of the automotive market of China may result in a sharp decline in the global consumption of oil and petroleum products.

According to experts, plug-in hybrids, range extenders and BEVs already constitute more than 50% of all vehicles sold in China. Projections show that petrol consumption in the country will decline by 5% every year until 2030, which may result in a severe gap between supply and demand in the petroleum industry. It may be too early to say what kind of crises may follow, but the risk is there.

Right now, China consumes around 20% of all oil produced worldwide.