According to Sinopec, China's domestic gasoil consumption is expected to decline by 1-2% on year to around 194 million tons in 2024.

Consumption mainly comes from demand for automobiles. It is expected that the number of vehicles running on gasoil will reach 23.45 million in 2024, rising 2-3% on year, and the consumption of gasoil for vehicles will reach 151 million tons, up 0.3% on year.

Meanwhile, it is expected that the consumption of gasoil for construction in 2024 will be about 6.2 million tons, down 1.4% on year. Consumption of gasoil by the industrial and mining sector will reach 9.2 million tons, which is basically the same as the previous year; Commercial consumption is expected to be 2.37 million tons, down 6.3% compared to the previous year.

In addition, the amount of alternative resources for gasoil will continue to expand, and is expected to exceed 25 million tons in 2024.

At the same time, due to the newly built Shandong Yulong Petrochemical project and the expansion project of CNOOC Daxie Petrochemical expected to be put into operation this year, China's production capacity will further increase, and it is expected that gasoil production will increase by 1-2 million tons on year. Therefore, the situation of domestic gasoil oversupply is further deepening, and it is expected that gasoil exports will continue to increase.