On Tuesday, the International Energy Agency (IEA) cut its forecast for India’s oil products demand in 2021.
In its monthly Oil Market Report (OMR), the IEA predicted the country’s total oil products demand to rise by 284,000 bpd year-on-year to 4.82 million bpd this year. It was a downward adjustment from last month’s forecast of a 314,000 bpd increase.
In the fourth quarter, the IEA said that demand growth would be robust by 480,000 bpd.
It also predicted that the overall product demand in India would offset the levels seen in 2019 next year.
This year, demand for diesel in India is estimated to climb by 131,000 bpd annually to 1.55 million bpd. This prediction is also down from August’s prediction for an increase to 1.56 million bpd.
For jet fuel and kerosene demand, the growth is predicted to be 14,000 bpd compared to the same period last year to 134,000 bpd, also lower than the previous forecast of 142,000 bpd.
Prediction for naphtha demand is also lowered, to a drop of 5,000 bpd annually to 314,000 bpd this year. Previously, the IEA expected a 10,000 bpd year-on-year growth to 329,000 bpd.
On the other hand, as driving activity increased with the reopening of public places and offices, the agency raised its gasoline consumption estimate to 736,000 bpd for this year from the 724,000 bpd predicted last month. The increase is projected to be 69,000 bpd year-over-year.
