The International Energy Agency (IEA) announced on Thursday that the rapid expansion of oil product consumption in India might be reaching a plateau.
According to the IEA’s monthly report, the anticipated growth in India’s oil product demand is expected to decelerate to 2.5% in the coming year, down from 4.1% in 2023.
While Indian oil product deliveries experienced a slight increase in November, the figures fell short of the usual seasonal upsurge, as noted by the agency. November deliveries saw a rise of 40,000 barrels per day (bpd), a stark contrast to the typical seasonal increment of 170,000 bpd.
Data from the Indian oil ministry’s Petroleum Planning and Analysis Cell (PPAC) revealed a decline in India’s fuel consumption for November following a four-month peak in the preceding month. The dip was attributed to reduced travel in the world’s third-largest oil consumer, as the festive boost tapered off.
The IEA forecasts a yearly increase of 220,000 bpd in 2023, with growth slowing to 110,000 bpd in the fourth quarter of the same year. Looking ahead to 2024, the IEA projects a growth rate of 140,000 bpd. While this would still represent the second-highest global growth, it pales in comparison to China’s impressive 710,000 bpd increase.