A Glance of China Oil Market 20260824

Weekly News

China EV sales create record-high penetrate rate in Jul

China's automotive industry remained broadly stable in July 2026, though the market entered its traditional off-season, with both month-on-month and year-on-year sales declining. However, the penetration rate of electric vehicles (EVs) hit a record high, with the decline largely driven by conventional fuel vehicles. In July, the auto market entered its traditional off-season, with foot traffic and orders naturally declining. This was compounded by the pull-forward of some demand from mid-year sales campaigns, persistent high temperatures across the country, and typhoon and flood disruptions in some regions.

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15th FYP positions unconventional gas as new growth pillar for China's natural gas industry

China's National Development and Reform Commission (NDRC) and National Energy Administration (NEA) have issued the Plan for Oil and Gas Development During the 15th Five-year Plan Period, targeting by 2030 oil and gas supply of 440 million tonnes of oil equivalent, 20,000 km of new pipelines, and gas reserves exceeding 13% of consumption. The plan identifies unconventional gas as the core pillar for production growth, sets no aggregate consumption target, and signals a shift from scale expansion to high-quality development. 

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China's LPG arrivals double MoM in July

Shipping data from OilChem shows China's LPG very large gas carrier (VLGC) arrivals reached 3,473,500 tonnes in July, up 102.42% month-on-month and 5.77% year-on-year. The surge was largely attributed to a temporary reopening of the Strait of Hormuz, a sharp drop in import costs, and Middle Eastern countries' active expansion of ship-to-ship (STS) transfer operations. In mid-June, the US-Iran Memorandum of Understanding (MOU) temporarily reopened the Strait of Hormuz, releasing VLGC vessels that had been trapped in the Gulf during the closure and significantly improving shipping efficiency.

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