The stimulus, largely in the form of special treasury bonds, aims to address dwindling consumer spending and deflationary pressures. However, analysts remain cautious, citing the potential for short-lived impacts. The burgeoning electric vehicle market, a key government priority, is expected to dampen long-term oil demand, even with economic recovery.
Furthermore, China possesses significant leverage, including strategic oil reserves and domestic production capacity, which it may utilize to mitigate the impact of rising oil prices on its economy.
While the recent uptick in oil prices may be partially attributed to the stimulus, the long-term effect on China's oil imports remains uncertain. The country's economic and energy policy trajectory, particularly the strong push for electric vehicles, will likely play a crucial role in shaping future oil demand.
