As India’s Oil Demand Grows, It’s Now Looking Beyond OPEC+ For Reliable Supply – Investing.com

As India’s Oil Demand Grows, It’s Now Looking Beyond OPEC+ For Reliable Supply – Investing.com

In , I highlighted the role that India will play in global demand in the coming years as its economy grows and oil consumption increases. In 2019, India was the third-largest consumer of oil and petroleum products, after the United States and China. India has almost no domestic oil resources, so all of its demand must be satisfied by imported oil.

Forecasters disagree on how much India's oil consumption will grow in the coming years, but the IEA predicts that it will accelerate from 4.9 million bpd in 2019 to 6 million bpd in 2024.

Traders can better understand the likely future sources of India's oil supply by first understanding the current oil situation. Moreover, India's supply choices today and in the future impact oil market fundamentals as well as oil politics in OPEC, OPEC+ and beyond.Reliance On OPEC+ Presents Strategic And Pricing Risks In 2019, according to the EIA, 59% of India's oil imports came from the Middle East. Iraq and Saudi Arabia were the largest suppliers, comprising 22% and 19% of the stock, respectively. This makes sense because the Middle East is near India, and shorter shipping times mean lower freight rates.

According to Samir Madani, co-founder of TankerTankers.com, it