India will surpass China as the largest source of oil demand growth in the world this decade, according to a new report from the International Energy Agency (IEA).
India is currently the world’s third largest oil importer and consumer behind China and the US.
The IEA is forecasting that India’s oil demand will grow 1.2m barrels per day between 2023 and 2030, reaching 6.6m barrels per day, with the country accounting for more than one-third of total global oil demand growth during that period.
The fastest growing products will be naphtha and jet fuel, but, in volume terms, diesel is slated to be the key driver of India’s oil demand growth.
“Stable refined product exports and increasing crude oil imports will enhance India’s role in the tanker market. India uses a variety of vessel sizes in both crude oil and product tanker trades and all segments will likely benefit,” a new report from broker Poten & Partners stated.