Oil Demand Growth to Remain Strong in India in FY24

SEATTLE (Oil Monster): The oil demand growth in India is expected to remain strong in FY24, according to experts. The positive outlook is despite fears of Chinese industrial slowdown impacting related economies and anticipated reduction in global crude production during the year. The rising economic in the country will contribute to surge in domestic demand, they noted.

The Organization of the Petroleum Exporting Countries (OPEC), in its latest monthly report, had predicted India’s oil demand in 2024 at 5.59 million barrels per day (b/d), higher by 4.1% when compared with the demand of 5.37 million b/d in 2023. At the same time, it foresees Chinese demand to surge higher slightly lesser by 3.6%.

In a recent report, the United States Energy Information Administration (EIA) had predicted India’s liquid fuel consumption growth at an average of 0.3 million b/d in 2024. The demand is expected to increase to 331,000 b/d in 2024 compared with 268,000 b/d in 2023, it said. Also, S&P Global expects the country’s consumption of oil products and liquids to surge higher to hit 5.3 million b/d in 2024.

The growth in domestic consumption of crude oil will be mainly driven by favourable base effects.

Meantime, the country’s gas demand is projected to grow by 8-10% in 2024, with domestic gas production expected to increase to 100 million metric standard cubic metre per day (mmscmd).