India's demand for oil grew y-o-y by 334,000 barrels per day in September

14 Oct 2022 , 09:28 AM

According to an S&P Global analysis, India’s oil demand increased by 334,000 b/d in September over the same period last year, driven by the consumption of diesel and gasoline.

However, demand didn’t change from month to month.

The data states that the daily use of diesel and gasoline increased by 179,000 and 65,000 barrels/ day (b/d), respectively.

LPG, kerosene/jet fuel, fuel oil, and small goods were among the other products that saw development. However, naphtha decreased by 21,000 b/d.

According to the research, which cited Google data, mobility indicators were still strong in early October and were 24% higher than pre-pandemic levels and 0.9% higher than in September.

Early in October, domestic air travel in India was 7% lower than before COVID. Early October witnessed a 3% increase over September. Early in October, international travel was down 16% from pre-pandemic levels, staying at September levels.

Boosted by the holiday and festive seasons, S&P Global Commodity Insights predicts that India’s oil demand would likely increase sequentially by 180,000 b/d in the fourth quarter (Q4) following the monsoon season.

The demand is predicted to increase by 75,000 b/d in Q4 compared to the first three quarters of this year when it increased by 370,000 b/d due to a low base.

India’s oil demand is predicted to increase by 300,000 b/d in 2022 before slowing to a 230,000 b/d growth in 2023, according to the analysis. Due in part to weak recovery in 2021, middle distillates (diesel, kerosene/jet fuel combined) will contribute to nearly half of the growth in 2022 before making up about a third of the growth in 2023.

India’s oil demand is anticipated to increase by 0.8% over 2019 levels in 2022 before increasing by 5.2% the following year.

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