India 2023 demand growth has been revised higher by 14,000 barrels per day from 246,000 b/d, which will be seven per cent above 2019 levels. India oil demand will likely grow by about 11 per cent in 2024, said S&P Global Commodities.
“Overall, India’s oil demand is expected to grow by 246,000 b/d in 2023, revised higher by 14,000 b/d from last month due to robust gasoil/gasoline demand being reported.
However, a delay in the start of HMEL’s 1.2 million mt/year naphtha-fed steam cracker at the Bathinda refinery in northern Punjab (likely toward the fourth quarter) is likely to pull down naphtha growth. Middle distillates, gasoil, and kerosene/jet fuel combined will account for 65% of the growth, with gasoline and naphtha both contributing. Oil demand is holding up quite well and should continue rising supported by solid economic growth with more focus on industrial and construction activity, however the third quarter (July-September) is expected to see a seasonal dip due to monsoon. India’s oil demand in 2023 is expected to be 7% above 2019, before rising to about 11% in 2024″, said Wang Zhuwei, Oil Analyst, S&P Global Commodity Insights.