IEA, India is growing, set to pass China in energy demand

IEA, India is growing, set to pass China in energy demand

Editorial Staff
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The South Asian nation is well on its way to taking China's place as global leader in oil demand, which in the last trimester grew by 400,000 barrels a day, amounting to 30% of global energy need

According to a recent report published by the International Energy Agency (IEA), New Delhi has passed Beijing in terms of demand for raw material. India is emerging as the number one buyer of energy products in international markets. In the first trimester of 2016 the Chinese demand for refined fuels was around 353,000 b/d, down by 60% compared to the third trimester of 2015, when demand was at around 900,000 b/d. India has instead seen a notable increase in oil products demand of 400,000 b/d, amounting to 30% of the global energy need. The figure is even more significant when compared to the increase in daily crude oil demand, which sits at 120,000 b/d. According to experts, India is at a structural turning point in terms of growth in oil products. The factors contributing to the increased demand on the international markets are the expansion of the road transport network, an increase in per capita income and the shift of industrial production towards the internal market. India’s pro capita income figure has reached China’s figure from 2002, which at the time coincided with a drastic increase of Chinese demand on oil and other raw material markets.