S&P: India to Surpass China in Oil Demand Growth

SEATTLE (Oil Monster): A recent analysis by S&P Global Commodity Insights projects that by the end of this year, India's oil consumption growth will overtake China's. According to the survey, the trend is also expected to continue in 2025 due to the expected acceleration of growth plans by the nation's largest refinery facilities.

India will become the primary force behind the future expansion of the oil demand in Southeast Asia, according to Kang Wu, Global Head of Macro and Oil Demand Research at S&P. India's oil demand is expected to grow by 3.2% in 2025, which is substantially more than China's 1.7% growth. He also underlined how the growing use of petrochemicals affects the need for oil in both nations.

In the upcoming year, a notable increase in India's refining capacity is anticipated. In order to build its first greenfield integrated refinery complex, the nation is already in negotiations with major oil producers. This will increase feedstock demand by an estimated 9 million metric tonnes. According to the S&P analysis, imports currently account for around 85% of India's oil needs.

It is important to remember that the Indian oil market only accounts for about one-third of the Chinese market.