An OPEC report has said that the demand for petroleum products like petrol and diesel in India will grow by 7.73 percent in 2022, which is the fastest pace in the world. OPEC in its monthly oil report said demand for oil products in India is projected to increase from 4.77 million barrels per day (bpd) in 2021 to 5.14 million barrels per day in 2022.
The growth in demand is the fastest in the world, ahead of China’s 1.23 percent, the US’s 3.39 percent and Europe’s 4.62 percent. For 2023, the Organization of the Petroleum Exporting Countries (OPEC) projected India’s demand growth of 4.67 per cent to 5.38 per cent.
However, this would be less than the 4.86 per cent growth in China. India It is the third largest oil importing and consuming country in the world after the US and China.
Demand for petroleum products in India is supported by healthy economic growth of 7.1 per cent, economic reopening amid easing of COVID restrictions and easing of trade-related barriers supporting both mobility and industrial sector activity. The report said oil demand will decline in the third quarter (July-September) due to the onset of monsoon, but will pick up in the next quarter during the festive and holiday season.
“Overall, based on the most recent trends, demand for diesel and jet kerosene will account for a large portion of the increase in demand in H2 as consumption of these two products fell sharply due to the pandemic,” it said. The report quoted secondary sources as saying that India’s crude oil imports averaged 4.7 million bpd in June, with Russian oil inflows at 0.9 million bpd.
“In terms of crude oil imports by source, Kepler data shows Russia garnering 24 per cent stake to become the top supplier of crude to India in June. Iraq dropped to second place with a share of 21 percent, followed by Saudi Arabia at 15 percent. India’s crude oil imports are likely to remain close to current levels in July, with Russian inflows above 1 million bpd and little hope, said a report by OPEC, an organization of the world’s major oil exporting countries such as Saudi Arabia and Iraq. is with. Less flow than elsewhere.
This continued India’s economy on a recovery path, supported by declining demand for services and high industrial output. “India’s economy may maintain its upward recovery momentum, but it will be moderate given several risk factors including high inflation, less favorable monetary conditions and deteriorating external environment.
“Import inflation is expected to rise in 2H22, leading to a higher trade deficit, given that India is a major importer of commodities and slowing global demand will weigh on exports,” it said. Moreover, the recent hike in interest rates may also undermine the country’s growth prospects as they prompt a suspension of investment plans in sectors without adequate capacity utilisation. However, as the current repo rate remains low by historical standards, the funding position may not preclude recovery in private investment from the end of 2022.
read the breaking news And today’s fresh news Here