India’s oil demand to grow by 13.6% to 5 mb/d in 2021: OPEC

Biznextindia : India’s oil demand to grow by 13.60 per cent or 6 lakh barrels/day to 4.99 million barrels/day (mb/d) in 2021 (Jan-Dec 12 month period) from 4.40 mb/d in 2020, a report by the OPEC has forecasted.

In its monthly oil market report, OPEC ( Organization of Petroleum Exporting Countries) said India’s oil demand growth of 13.60 per cent will be the highest among the world’s major oil consuming countries. World’s top oil consumer China’s oil demand is expected to grow by 8.49 per cent to 14.20 mb/d from 13.09 mb/d in 2020.

Overall the oil demand in the non-OECD region is estimated to rise by 3.3 mb/d to reach 51.6 mb/d in 2021. Demand growth is anticipated to be driven by China, followed by India and Other Asia. Support will be provided by a healthy recovery in economic activities, as well as encouraging demand from the industrial sector and improving transportation fuel requirements. Demand for petrochemical feedstock is also forecast to support demand growth in 2021.

Oil demand in the non-OECD region is estimated to rise by 3.3 mb/d to reach 51.6 mb/d in 2021. Demand growth is anticipated to be driven by China, followed by India and Other Asia. Support will be provided by a healthy recovery in economic activities, as well as encouraging demand from the industrial sector and improving transportation fuel requirements. Demand for petrochemical feedstock is also forecast to support demand growth in 2021.

“The encouraging macroeconomic indicators, together with significant decreases in COVID-19 cases across the country, provided a solid foundation for the 2021 oil demand outlook in India. The recent positive developments in industrial activities in light of the solid manufacturing PMI as well as the m-o-m decline in unemployment rates are supportive factors to oil demand. As a result, industrial fuels are projected to be the backbone for oil demand growth in 2021, with a healthy rebound for transportation fuels providing further support. The aviation sector will remain under pressure throughout 2021 and will also be a major source of uncertainty” OPEC said.

In 2021, world oil demand is forecasted to rise by 5.9 mb/d, reflecting the positive economic impact on oil demand during 2H21. Total oil demand is foreseen to reach 96.3 mb/d with most consumption appearing in the 2H21.