In its latest monthly oil market report, the Organisation of Petroleum Exporting Countries (OPEC) has painted a positive picture for India’s oil demand, projecting a significant surge in growth for the year 2024. According to OPEC’s analysis, India’s oil demand is expected to expand by 228 thousand barrels per day (bpd) compared to the previous year, driven primarily by the consumption of diesel. This growth trajectory is anticipated to be supported by robust activities across key sectors such as agriculture, construction, and manufacturing.
The report underscores the pivotal role of diesel consumption in India’s oil demand landscape, highlighting its crucial importance in powering various sectors of the economy. With agriculture, construction, and manufacturing activities showing resilience and vigor, the demand for diesel is expected to remain strong, contributing significantly to the overall growth in oil consumption.
Furthermore, OPEC points out that the increase in transportation activity during festivities and the gradual recovery in air travel post-pandemic will further bolster oil demand growth in India throughout the year. Festivals and celebrations are integral parts of Indian culture, often leading to heightened travel and transportation, which in turn, stimulates fuel consumption. Similarly, the gradual resumption of air travel is expected to provide a significant boost to the demand for jet fuel, further contributing to the overall growth in oil consumption.
In addition to short-term projections for 2024, OPEC also offers insights into the long-term outlook for India’s oil demand. The organisation remains optimistic about India’s economic momentum in 2025, foreseeing steady growth in manufacturing and business activities. As such, OPEC anticipates a continued increase in oil demand, with diesel expected to maintain its position as the primary driver of growth. Other products such as bitumen, alongside healthy demand for transportation fuels and petrochemical feedstock, are also expected to contribute to the overall growth in oil consumption.
Meanwhile, on a global scale, OPEC has retained its projection of 2.2 million bpd year-on-year growth in global oil demand for the year 2024. Strong demand is expected from non-OECD regions, particularly China, the Middle East, and Other Asia, underscoring the importance of these regions in driving global oil consumption.
As the world continues to navigate through uncertainties and challenges, OPEC emphasizes the importance of careful market monitoring, especially during the upcoming summer months, to ensure a sound and sustainable balance in the oil market. With ongoing efforts to stabilize and support oil prices, OPEC remains committed to facilitating a smooth transition towards a more resilient and sustainable energy future.