NEW DELHI: India’s crude oil imports are expected to rise, with higher inflows from Russia, said OPEC in its monthly oil market report released on Tuesday. The report also noted that India recorded bullish year-on-year oil demand growth of 0.43 million barrels per day (MMB/D) in November, up from 0.1 million barrel per day.
The November oil demand expansion was driven by diesel, which posted year-on-year growth of 0.3 mb/d. Diesel consumption surpassed a three-year high, rising 19% y-o-y in November. “We see enormous economic growth coming from India and China. They will not only command 50% of the global economy, but also a big chunk of the energy resources consumption,” said Dr Ayed S. Al-Qahtani Director, Research Division of the OPEC at the Energy India Week 2023.
As per the report, Russia was the top supplier of crude to India in November for the sixth month in a row with a share of 24%, as refiners continued to bring in discounted barrels. Saudi Arabia was second with 20%, followed by Iraq with 15%. In the first quarter of this year, India’s oil demand is projected to rise by 0.2 mb/d y-o-y in 1Q of 2023. Its gasoline demand is expected to expand due to rising vehicle sales and overall steady economic growth.
“Demand for transportation fuel is anticipated to lead product demand. With projected continued healthy GDP growth, India’s oil demand is forecast to expand y-o-y by 0.3 mb/d in 2Q23,” reads the report.