India’s oil demand in 2021 to fall below 2019 levels
OIL & GAS

India’s oil demand in 2021 to fall below 2019 levels

According to S&P Global Platts, India's oil demand in 2021 is likely to fall below that of 2019. This is due to the second wave of the Covid-19 pandemic, which has resulted in increased lockdowns across multiple states.

According to Kang WU, Director of Global Demand and Asia Analytics, India's oil demand is expected to be 225,000 barrels per day lower in April than it was in March, according to Platts Analytics. Due to more impending restrictions, May is expected to weaken even more, falling by 370,000 barrels per day before improving in June. After a sharp contraction of 470,000 barrels per day last year, the firm has revised down India's oil demand growth for 2021 to 350,000 barrels per day, which is still positive. As a result, oil demand in 2021 is expected to remain lower than it was in 2019.

Oil demand is already outpacing supply and the shortfall is expected to worsen.

Oil prices fell on Thursday, reversing an eight-week high, as fears of the Coronavirus outbreak in India, the world's third-largest crude importer, dampened a rally fueled by IEA and OPEC predictions of strong demand.

After gaining over 1% on Wednesday, Brent crude was down 32 cents, or 0.5%, at $69.00 a barrel by 0145 GMT. After rising 1.2% the previous session, West Texas Intermediate (WTI) was down 31 cents, or 0.5%, to $65.77 a barrel.

The Organisation of Petroleum Exporting Countries (OPEC) recently maintained its forecast for a robust return of global oil demand in 2021, citing growth in China and the United States as cancelling out the impact of India's Coronavirus crisis.

Image Source

According to S&P Global Platts, India's oil demand in 2021 is likely to fall below that of 2019. This is due to the second wave of the Covid-19 pandemic, which has resulted in increased lockdowns across multiple states. According to Kang WU, Director of Global Demand and Asia Analytics, India's oil demand is expected to be 225,000 barrels per day lower in April than it was in March, according to Platts Analytics. Due to more impending restrictions, May is expected to weaken even more, falling by 370,000 barrels per day before improving in June. After a sharp contraction of 470,000 barrels per day last year, the firm has revised down India's oil demand growth for 2021 to 350,000 barrels per day, which is still positive. As a result, oil demand in 2021 is expected to remain lower than it was in 2019. Oil demand is already outpacing supply and the shortfall is expected to worsen. Oil prices fell on Thursday, reversing an eight-week high, as fears of the Coronavirus outbreak in India, the world's third-largest crude importer, dampened a rally fueled by IEA and OPEC predictions of strong demand. After gaining over 1% on Wednesday, Brent crude was down 32 cents, or 0.5%, at $69.00 a barrel by 0145 GMT. After rising 1.2% the previous session, West Texas Intermediate (WTI) was down 31 cents, or 0.5%, to $65.77 a barrel. The Organisation of Petroleum Exporting Countries (OPEC) recently maintained its forecast for a robust return of global oil demand in 2021, citing growth in China and the United States as cancelling out the impact of India's Coronavirus crisis. Image Source

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code