According to WPB, India has firmly positioned itself as the leading driver of global oil demand growth, having overtaken China earlier than many analysts anticipated. The country’s oil consumption shows no indication of deceleration, as figures continue to rise steadily.
The latest Monthly Oil Market Report by OPEC highlights that India’s oil demand is forecasted to expand by 3.4% in the coming year, reaching 5.74 million barrels per day (bpd), followed by a projected 4.3% increase the year after, pushing consumption to 5.99 million bpd. These rates are significantly higher than China’s expected growth of 1.5% and 1.25% during the same period.
This surge is largely attributed to India’s dynamic economic progress, which is being propelled by vigorous consumer activity, an uptick in industrial output, and sustained governmental support. Diesel consumption continues to dominate the overall demand increase, bolstered by accelerated road development and a thriving transport and petrochemical industry. Furthermore, demand for bitumen is anticipated to experience considerable growth as infrastructure initiatives gain momentum nationwide.
Despite the United States maintaining its lead as the highest overall oil consumer with an estimated 20.5 million bpd in the next year, India’s rapid growth pace outstrips that of all other major economies. Earlier projections by the U.S. Energy Information Administration indicated that India could contribute approximately one-quarter of the world’s oil demand growth during the current period—an influential role once associated with China.
Domestic consumption figures reinforce this upward trajectory. Fuel usage in India increased by 3.2% compared to the same period a year earlier. Diesel and gasoline experienced respective year-on-year rises of 4.2% and 6.7%. Although there was a slight decline following the festive peak, the overall consumption pattern remains robust.
India’s crude oil imports also reached unprecedented levels, hitting 5.4 million bpd recently—a new record. Russia retained its position as India’s primary supplier, accounting for 36% of total imports, trailed by Iraq and Saudi Arabia.
With its current momentum and expanding energy needs, India has clearly outpaced China as the most rapidly growing oil market and appears set to maintain this dominant role in the foreseeable future.
By Bitumenmag
Oil, Petroleum, Crude
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