Anticipating India's Leadership in Oil Demand Over Next 10 Years

The International Energy Agency (IEA) has forecasted in a recent report that India is anticipated to surpass China as the leading source of global oil demand growth in the next decade.

Currently, India ranks third in the world both as an oil importer and consumer, trailing behind China and the United States.       

The IEA predicts a surge in India's oil consumption, projecting a growth of 1.2 million barrels per day from 2023 to 2030, ultimately reaching 6.6 million barrels per day. This anticipated increase positions India as a significant contributor, accounting for over one-third of the total growth in global oil demand throughout this timeframe.

Naphtha and jet fuel are anticipated to witness significant growth, while diesel is poised to emerge as the primary catalyst for the expansion of India's oil demand in terms of volume.

“Stable refined product exports and increasing crude oil imports will enhance India’s role in the tanker market. India uses a variety of vessel sizes in both crude oil and product tanker trades, and all segments will likely benefit,” A recent report released by the brokerage firm Poten & Partners indicated.