Oil Demand Growth in India Expected to Decelerate Significantly

Oil Demand Growth in India Expected to Decelerate Significantly

VoM News Desk | December 14, 2023 | 04:30 PM IST | Energy | Follow on Google News

Oil Demand Growth in India Expected to Decelerate Significantly

Oil Demand Growth in India Expected to Decelerate Significantly

India’s oil consumption trajectory is predicted to witness a substantial slowdown, with projections indicating a mere 150,000 barrels a day growth in 2024. This represents a noteworthy reduction from the significant increase of around 290,000 barrels a day experienced between 2021 and 2023. Such a decline would align growth rates more closely with those observed between 2011 and 2019, highlighting a significant deceleration.

IEA’s Conservative Forecast
The International Energy Agency (IEA) has provided a more cautious estimate, foreseeing a halving of the growth rate to 100,000 barrels a day, as outlined in their November report. This deceleration in oil demand growth is attributed primarily to the normalization of demand after the initial surge witnessed during the pandemic recovery phase. This broader trend of decelerating oil demand growth is notable in pivotal Asian markets like India and China.

Impact on Global Oil Prices
The apparent slowing of oil demand growth in key Asian markets has already started influencing oil prices on a global scale. The reduced projections signal a potential shift in the dynamics of oil consumption, indicating a less robust demand trajectory than previously anticipated.

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