Oxford Institute for Energy Studies – Tariffs, China’s Petrochemicals Sector, and China-GCC Oil Relations

The main theme of the report concerns the impact of tariffs on China's petrochemical sector and China's relations with the Gulf Cooperation Council (GCC) in the context of oil imports.

Key findings include the volatility of oil imports into China, with an increasing share of sanctioned oil from Iran, Venezuela, and Russia. There is a decrease in oil imports from West Africa and the USA. The demand for petrochemical products such as naphtha and liquefied petroleum gas (LPG) is growing, leading to an overall increase in oil demand in China. The demand for gasoline and diesel is slowing due to the electrification of transport and weaknesses in the real estate sector.