{"id":13228,"date":"2025-02-06T07:15:56","date_gmt":"2025-02-06T07:15:56","guid":{"rendered":"https:\/\/roydadnaft.ir\/English\/?p=13228"},"modified":"2025-02-06T07:15:56","modified_gmt":"2025-02-06T07:15:56","slug":"new-beacon-of-hope-indias-oil-demand-growth-offers-abundant-opportunities-for-global-suppliers","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/13228\/","title":{"rendered":"\u2019New beacon of hope\u2019: India\u2019s oil demand growth offers abundant opportunities for global suppliers"},"content":{"rendered":"

RoydadNaft – <\/a><\/span>\u00a0India \u2014 the world\u2019s most populous nation \u2014 is expected to account for one quarter of global oil demand growth in 2025, which gives New Delhi \u201can immense sway\u201d in international energy markets, writes Gaurav Sharma in consultant Wood Mackenzie\u2019s Energy Connects.<\/p>\n

Last year, India \u2014 with its burgeoning economy growing at around 6% \u2014 imported considerably more than 4 million barrels per day of crude oil.<\/p>\n

\u201cThat pace of importation will likely be maintained this year with most forecasters predicting an economic growth rate at par with last year, or even higher at around 6.5%,\u201d noted Sharma.<\/p>\n

\u201cFurthermore, Prime Minister Narendra Modi\u2019s administration also hopes to position India as an export hub of petroleum products and distillates, cracked by an estate of 23 refineries and counting.\u201d<\/p>\n

Foreign direct investment is being courted to enhance India\u2019s pipeline network and develop liquid exports infrastructure, and such developments may further boost crude imports.<\/p>\n

Consequently, India\u2019s growing needs now regularly catch the eye of market statisticians and forecasters, said Sharma.<\/p>\n

The US Energy Information Administration (EIA) in December forecast that India is poised to overtake China and account for a quarter of global oil demand growth in 2025, which it projected in the region of 1.3 million bpd for the year.<\/p>\n

\u201cDriven by rising demand for transportation fuels and fuels for home cooking, consumption of liquid fuels in India is forecast to increase by 330,000 bpd in 2025 \u2014 up from 220,000 bpd in 2024,\u201d the EIA stated.<\/p>\n

Meanwhile, Opec and the Paris-based International Energy Agency respectively pegged this year\u2019s global oil demand growth at 1.45 million bpd and 1.1 million bpd, with both saying India would account for a significant part of that demand growth.<\/p>\n

\u201cCognisant of the cost permutations of a cyclical commodity that trades in US dollars, Indian importers are becoming as deft at hedging strategies as any other major oil importer. But India\u2019s market clout and the world\u2019s desire to business with Delhi, has seen it diversify its pool of crude oil suppliers at a phenomenal pace,\u201d commented Sharma.<\/p>\n

Last year, India\u2019s tally of suppliers increased from 27 to 39 countries. Further updates are to be expected at the upcoming India Energy Week 2025 \u2014 a showcase of investment opportunities in the country\u2019s multifaceted energy sector, he said.<\/p>\n

India’s Minister for Petroleum and Natural Gas, Hardeep Singh Puri, appears spoilt for choice and wants his country to remain agile in terms of sourcing crude oil globally at competitive prices.<\/p>\n

\u201cWe know the Indian economy will account for 25% of the near to medium-term global increase in demand over the coming years. We are a large importer and find there is no shortage of crude in the world,\u201d Puri said last September at Gastech 2024 in Houston, US.<\/p>\n

Indeed, market conditions coupled with India\u2019s buying strategy has seen it source crude oil from Malaysia to Brazil and other countries in between without much difficulty, noted Sharma.<\/p>\n

And with the tightening of US sanctions on Russian oil imports in January, and a return of President Donald Trump to the White House, Delhi\u2019s attention has rapidly shifted to securing the barrels it needs from elsewhere including Brazil, Guyana, Oman and the US, he said.<\/p>\n

\u201cWe should expect a similar sort of a source shifting agility over the coming years. That\u2019s because by 2030, India’s economy is expected to be the world\u2019s third largest, behind only the US and China. It seems the global oil market\u2019s big new beacon of hope in 2025 will likely be just as big, if not bigger, as the turn of this decade approaches.\u201d<\/p>\n

India Energy Week 2025, organised by DMG Events, will take place in New Delhi from 11 to 14 February.<\/p>\n

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