China’s 2016 oil demand grew at the slowest pace in at least three years, Reuters’ calculations based on official data showed, the latest indication that demand from the world’s largest energy consumer has diminished.

China’s implied oil demand growth eased to 2.5 per cent in 2016, down from 3.1 per cent in 2015 and 3.8 per cent in 2014, Reuters’ data showed, led by a sharp drop in diesel consumption and as gasoline usage eased from double-digit growth.

The slowing occurred as the economy expanded by only 6.7 per cent in 2016, the slowest pace in 26 years.

"Inventory-adjusted diesel posted the first annual drop in 2016," Harry Liu, associate director of oil markets with IHS Energy said. "Diesel consumption has been hit by an extended period of flood in the second quarter and less demand from the logistic sector as efficiency continue to improve"

Gasoline consumption was 3.6 per cent higher than 2015. That compared with growth of 9.1 per cent in 2015 and a 13 per cent gain in 2014, Reuters data showed. Liquefied petroleum gas usage expanded 24 per cent, while kerosene demand gained 9 per cent from a year ago. Crude oil demand growth also eased despite a record pace of imports in 2016.