As a result of strong manufacturing activity and rising consumer confidence, India’s crude oil demand is anticipated to increase by 8% sequentially to 5.35 million barrels per day (mb/d) from October through December 2022. The demand for oil in India is predicted to increase by 1.1% quarterly to 5.41 mb/d between January and March of the 2023 calendar year, according to OPEC’s monthly oil market report for October.
“India’s oil demand projection for Q4 2022 is anticipated to increase further due to the country’s robust 6.5 % GDP growth and brisk manufacturing activity. Demand for industrial products and mobility will probably be supported by an anticipated increase in consumer confidence. Construction work and the Kharif season following the monsoon are also anticipated to boost rising demand. Accordingly, OPEC predicted that with a recovery in the economy and social activity, oil demand would increase by 0.3 mb/d in Q4 2022.
In October, manufacturing, building, and harvesting activities are anticipated to support distillates. Additionally, advancements in air travel will help jet-kerosene demand, as would yearly customary celebrations, an influx of passengers, and support for mobility. Increased demand for fuel oil and distillates will result from the transfer from gas to oil in the industrial sector and power generation, it was underlined.
The group of oil-producing nations observed that India’s oil demand is anticipated to expand on average at 0.2 mb/d on an annual basis in Q1 2023, continuing on a favorable trajectory. Mobility and sustained distillate demand from industrial and construction will probably help the demand growth improve in Q1 of 23.