Updated December 17th, 2023 at 10:01 IST
IEA sees India's oil product demand growth slowing in 2024
IEA projected that India's oil product demand growth would slow to 2.5 per cent next year from 4.1 per cent in 2023.
India’s “explosive growth” in oil product consumption may be coming to an end, the International Energy Agency (IEA), said on Thursday. In its monthly report, the IEA projected that India's oil product demand growth would slow to 2.5 per cent next year from 4.1 per cent in 2023.
According to the report, oil product deliveries edged higher in November, but were underwhelming compared to the usual seasonal rise, the agency noted. Deliveries in November increased by 40,000 barrels per day (bpd), compared with the typical seasonal upswing of 170,000 bpd.
Data from the Oil Ministry's Petroleum Planning and Analysis Cell (PPAC) showed that India's fuel consumption in November fell after hitting a four month peak in the previous month, hit by reduced travel in the world's third biggest oil consumer as a festive boost fizzled out. According to the IEA, the annual 2023 gains will be 220,000 bpd. It sees growth slowing down to 110,000 bpd in the fourth quarter of 2023.
The report also mentioned that the world oil demand is on track to rise 2.3 mb/d to 101.7 mb/d in 2023, but this masks the impact of a further weakening of the macroeconomic climate. “Global 4Q23 demand growth has been revised down by almost 400 kb/d, with Europe making up more than half the decline,” the report stated. The IEA highlighted that the US oil supply growth continues to defy expectations, with output shattering the 20 mb/d mark.
“This, combined with record Brazilian and Guyanese production along with surging Iranian flows will lift world output by 1.8 mb/d to 101.9 mb/d in 2023. Non-OPEC+ will again drive global gains in 2024,” the IEA said.
Published December 15th, 2023 at 13:37 IST