Global oil demand growth is experiencing a significant slowdown, primarily attributed to China's cooling economy and a shift towards lower-carbon fuels, according to the International Energy Agency and industry experts. Consumption increased by only 800,000 barrels per day in the first half of 2024, marking the lowest growth rate since the 2020 pandemic. In China, annual oil demand growth has plummeted from 500,000-600,000 bpd before COVID-19 to approximately 200,000 bpd now, largely due to the rise of electric vehicles and liquefied natural gas (LNG)-powered trucks. This transition away from diesel vehicles is causing permanent changes in fuel demand patterns, exacerbated by economic weakness and lower refinery production. Oil prices have reached a three-year low, reflecting concerns over this reduced demand and OPEC+ production adjustments. Despite the challenges, analysts caution against underestimating China's potential for an economic rebound that could reinvigorate oil consumption.