New Delhi [India], October 11 : S&P Global Commodity Insights said oil demand in India is expected to grow by 249,000 barrels per day in 2023, revised higher by 10,000 bpd from its last update.
"Middle distillates, gasoil, and kerosene/jet fuel combined will account for 53 per cent of the growth, with gasoline and naphtha together to contribute 28 per cent to the growth. Oil demand is holding up quite well and should continue rising supported by solid economic growth with more focus on industrial/construction activity and upcoming festival season," said Himi Srivastava, Analyst - South Asia Oil Markets, S&P Global Commodity Insights.
India's oil demand in 2023 is expected to be 7 per cent above 2019, before rising to about 11 per cent the next year, Himi Srivastava added.
India's oil demand in September grew by 1.5 per cent month on month and 6.7 per cent on year as factory activities and mobility remained strong. All products saw a growth in demand in September over August except for naphtha and kerosene.
"Demand remained strong from the mobility sector as evident from the data of e-way bills generation and daily average highway toll transactions. There was some slowness from the agriculture sector and contraction in sales of tractors leading to lower diesel consumption," S&P Global Commodity Insights said.
In September, total jet fuel and kerosene demand decreased to 182,000 bpd, down by 3 per cent from last month as kerosene demand reduced due to switching to LPG while jet fuel consumption increased on month by 0.4 per cent.
According to AirNav Radar Box, India's domestic flights in were down by 1 per cent as compared to last month but up by 7 per cent on year. International travel, however, was up 3.5 per cent on the month and 19 per cent above last year. The flight departures paint a positive picture due to summer travel demand.
Meanwhile, the S&P Global India Manufacturing PMI decreased to 57.5 in September from 58.6 a month earlier due to softness in export orders on month and a surge in input costs, however, the overall sentiment was seen as upbeat. S&P Global India Services PMI rose to 61 in September from 60.1 in August, signalling a sharp upturn in output that was one of the strongest in over 13 years.
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