OPEC: India Oil Demand Rising Rapidly

OPEC: India Oil Demand Rising RapidlyOPEC: India Oil Demand Rising Rapidly

India’s oil demand is expected to rise by 5.8 million barrels per day by 2040, accounting for about 40% of the overall increase in global demand during the period, OPEC’s secretary general said on Tuesday.

“India is projected to see the largest additional oil demand (3.7% per annum) and the fastest growth in the period to 2040,” said Mohammed Barkindo.

He added that the global oil sector needed $11 trillion in investment to meet future demand by 2040, Reuters reported.

Global oil demand is expected to increase by 14.5 million bpd from 2017 to 111.7 million bpd in 2040, OPEC said in its latest report, issued in September.

Retail fuel prices in India, the world’s third-biggest oil consumer, and importer, recently touched record levels due to high oil prices and a weakening rupee, leading to protests across the country.

Barkindo said consumers including India have expressed concerns on the outlook for supply. “Our view is that the market is currently adequately supplied and well balanced. For 2019, there is the potential for an imbalance, due to larger growth in supply,” he said.

Barkindo’s views echoed those of Patrick Pouyanne, chief executive of French oil and gas group Total, who said on Tuesday that he expected demand for crude to be lower and supply to be higher in 2019.

Pouyanne said last week higher oil prices and a strengthening dollar would affect demand for crude, and added that crude prices could come down once pipeline infrastructure is ready in the US.

Barkindo also said global spare oil capacity was shrinking, adding that producers and companies should increase their production capacities and invest more to meet current demand.

According to the secretary general, members of the Organization of the Petroleum Exporting Countries and non-OPEC countries participating in a supply-reduction agreement are on course to reach 100% compliance.

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