India Leads Global Oil Demand Growth

According to the latest Monthly Oil Market Report from the Organization of the Petroleum Exporting Countries (OPEC), India is poised to outpace China in oil demand growth by more than double in 2025 and 2026. This surge is attributed to the country's rapid economic expansion and increasing energy needs.

Projected Oil Demand Figures

India's oil consumption is expected to rise from 5.55 million barrels per day (bpd) in 2024 to 5.74 million bpd in 2025, marking a 3.39% increase. The growth trajectory is set to continue, reaching 5.99 million bpd in 2026, a 4.28% year-on-year rise.

Global Oil Consumption Trends

While the United States remains the top oil consumer globally, India's accelerating demand underscores its growing influence on worldwide oil markets. China's oil demand, in contrast, is forecasted to grow at a slower pace of 1.5% in 2025 and 1.25% in 2026.

Economic and Sectoral Drivers

OPEC highlights consumer spending, investment, and government support for key sectors as pivotal factors driving India's economic and oil demand growth. Despite potential challenges from US tariffs, fiscal and monetary measures are expected to sustain momentum.

Future Outlook

With diesel demand leading the way, India's oil product consumption is projected to grow significantly. The expansion of road infrastructure and increasing needs for petrochemical feedstock further bolster this outlook, positioning India as a central figure in global oil demand dynamics.