India's oil demand is expected to grow by 6.6% in 2024, according to the latest OPEC Monthly Oil Market Report. This growth positions India as a key contributor to the overall non-OECD oil demand, which is projected to increase by approximately 1.9 million barrels per day (mb/d) in 2024. Despite a slight downward revision in global oil demand growth forecasts, India's demand outlook remains unchanged.

Globally, the report revises the world oil demand growth forecast for 2024 downward by 135,000 barrels per day (b/d), bringing it to 2.1 mb/d. This adjustment is primarily due to lower-than-expected demand growth in China and data from the first half of 2024. However, India's demand, driven by a projected economic growth rate of 6.6%, shows resilience amidst these global revisions.

India's demand is bolstered by steady economic activity, particularly in the transportation and manufacturing sectors. In contrast, OECD countries are anticipated to experience modest demand growth of around 0.2 mb/d in 2024. India's role in the global oil market remains significant, as it continues to be one of the primary drivers of non-OECD demand growth alongside China and the Middle East.

Looking ahead to 2025, India's oil demand is forecasted to rise by 6.3%, maintaining its upward trajectory. This consistent growth is linked to India's expanding industrial base and population, which are key factors in the country's increasing energy consumption.

India's crude oil imports in June 2024 averaged 4.5 mb/d, a slight decrease from the strong levels observed in previous months, reflecting seasonal trends. Additionally, product imports declined by 8%, mainly due to reduced inflows of LPG. Nevertheless, India's overall oil demand remains stable, with the country's refineries operating at high utilization rates to meet domestic and export needs.

In the global context, the report highlights a mixed economic performance among major economies. While the global oil demand forecast has been revised slightly downward, the US economy's growth has been revised upward to 2.4% for 2024, contrasting with a slight downgrade in Japan's economic growth to 0.2%. The Eurozone's growth forecast remains unchanged at 0.7% for 2024.