China may collapse the oil market due to the transition to electric vehicles – RT in Russian

Writes about this RIA Novosti with reference to analyst estimates.

As the agency points out, China accounts for 41% of the annual increase in global oil sales, due to the need for gasoline for cars. However, this number will sharply decrease with the mass introduction of electric vehicles.

“The speed of the transition to electric vehicles has stunned oil producers and investors. No market can replace Chinese demand,” says the Statistical Review of World Energy, prepared by experts from the World Energy Institute.

Analysts believe China's oil imports will peak next year and then begin to decline. In 2023, every third new car purchased in the country was electric and the share in global sales reached 60%.

At the same time, there are also many skeptics who doubt the collapse of the oil market in this situation. They point out that the demand for jet fuel is currently stable, the service life of electric cars is only seven to ten years, and their replacement is extremely expensive, while the production of the necessary lithium ion batteries is an extremely resource-intensive process, and their recycling is still ineffective and difficult , which leads to environmental problems. Experts also point out that the boom in sales of electric cars in China is associated with the overproduction of cars that are not allowed, for example, on the US market. As a result, large-scale incentives are introduced for their purchase, and without them, interest in such cars will quickly decline.

Number of electric vehicles in Norway in September exceeded the number of gasoline cars.