China Q2 oil demand falls 9% YoY, first emissions drop driven by oil shift

China's oil consumption fell 9% YoY in Q2 as high crude prices accelerated electrification of transport and industry, cutting CO2 emissions by 1%—the first quarterly decline driven primarily by lower oil use. Power-sector emissions rose 3% on coal generation, offsetting some gains. The shift signals structural demand destruction in China's oil market, with implications for global crude balances and energy transition trajectories.