India Oil Sector to Focus on Comeback

India's appetite for oil is set to emerge from the red and post positive growth in 2021, a year that will likely witness key consolidation and mergers as well as refiners' strategic push to devise ways to reduce their carbon footprint.
Most analysts believe the worst for India's oil demand is over, S&P Global reported.  The country is set to witness the first year of negative oil demand growth in nearly two decades in 2020 on the back of the Covid-19 pandemic, but the government's efforts to inject funds into infrastructure will support growth.
In addition, the plan for a majority stake sale in state-run Bharat Petroleum Corp., Saudi Aramco's planned purchase of a stake in Reliance Industries and the expected completion of refinery expansions -- delayed from 2020 -- will be some of the key themes that will dominate the headlines in 2021.
"The year 2021 brings optimism for the energy sector not only in terms of a quick jump to pre-Covid levels, underpinned by structurally buoyant energy fundamentals, but also robust incremental growth enabled by the government's thrust upon cross-sectoral reforms and conducive investment climate," B. Anand, CEO of Nayara Energy, told S&P Global Platts.
S&P Global Platts Analytics expects India's oil demand in 2021 to recover to levels slightly above 2019 as the economy rebounds, with consumption expected to grow by 465,000 bpd, after declining 455,000 bpd in 2020. 
India's mobility index continued to improve over the past few months, with November averaging 124% against pre-Covid levels, up from 104% in October.