India's fuel demand reached its highest level in seven months in December 2023, totaling more than 20 million mt, according to data from India's Ministry of Oil, quoted by Reuters. On a month-to-month basis, demand grew by 62%, while on an annualized basis, an increase of 26%。Among the fuels, the demand for all fuels, except gasoline, has grown.
India, along with China, is widely seen as one of the two major drivers of global demand. India is the world's third-largest consumer. Its economy is growing faster than the global average and its energy demand is faster than the world's. Since last year, India has become the largest buyer of sanctioned Russia**, many of which are exported in the form of fuel to Europe, which has imposed sanctions on Russia**.
However, this surging demand has slowed this year, falling to 150,000 b/d from 290,000 b/d in 2023, according to Rystad Energy. Even so, India is struggling to ensure the long-term longevity of its hydrocarbons**.
At the end of last year, New Delhi reached an initial oil and gas agreement with Guyana** covering everything from offshore exploration to oil and gas fields**. India** said that the agreement with Guyana should help India diversify and strengthen its energy and security.
India imports around 85% of its consumption and has been looking to diversify to the lowest possible purchases. This made it the largest buyer of Russian discounts** last year, and Russia became the largest *** country in India.
India is ramping up its refining capacity as oil demand grows, which is expected to add 1.12 million b/d this year and maintain that pace until 2028. During this period, the total capacity expansion will reach 22%. (Compiled by Xiao Chen).
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