Chinese travellers forgoing the open road in favour of trains while making the switch to electric cars means the top driver of the world’s oil demand may soon step on the brakes, according to Morgan Stanley.
Oil consumption in China will peak in 2025, five to eight years earlier than market consensus, analysts including Andy Meng wrote in a report. While most countries moving up the economic ladder have shown continued growth in oil demand from increased driving, China will probably follow a unique model where electric vehicles and high-speed rail travel would drastically reduce gasoline consumption, the bank said.
