India’s oil demand forecast to recover
The Organization of Petroleum Exporting Countries (OPEC) has said in its latest monthly report that India’s oil demand is expected to jump 8.2% to 5.15 million barrels per day in 2022. The positive forecast comes as the Indian economy continues to rebound from the devastation caused by the coronavirus pandemic.
According to the report, the nation’s crude demand rose from 4.51 million barrels per day in 2020 to 4.76 million bpd in 2021, representing growth of 5.61%. However, this was still below pre-pandemic levels.
“With expected strong economic growth of 7.2% in 2022 and expected rapid containment of Omicron in the near future, oil demand is expected to recover,” said the report.
OPEC highlighted that mobility has continued to improve, as average driving activity in India increased. The country’s oil demand in 2022 increased as states relaxed Covid-19 restrictions.
“Gasoline (petrol) and diesel are likely to be particularly favored by the expected rise in GDP and the already recovering mobility and consequently driving activity,” it said.
India is the world’s third-biggest energy consumer, importing roughly 80% of the crude oil it needs. The country said this week it may import as much as two million tons or roughly 15 million barrels of Russian crude this year. New Delhi said it would “be happy” to take Russian oil and other commodities, using the national currencies of India and Russia to carry out the transactions to avoid the US dollar and related sanctions.
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