India’s COVID-19 numbers could potentially cast a shadow on oil consumption
AWR Lloyd’s Rajat Kapoor wrote an article in the Economic Times on India’s petroleum consumption trends in light of the increasing number of Covid cases.
As the second wave of the coronavirus batters India, petroleum products usage and by extension, crude consumption, are expected to take a downward, albeit short-term, hit.
Fuel: A marked decrease in travel due to on going lockdown restrictions has been mirrored in the consumption of transportation fuels, with sale of both petrol and diesel falling last month to nearly 20% from March 2021 levels, even though this drop was not as sharp as that seen in April 2020, when a harsh nation-wide lock down was imposed
Crude Oil: OPEC, earlier this year, had forecasted a 13% jump, over 2020, in the country’s oil demand to reach nearly 4.99 mn bopd. A slight downward revision is, logically, now expected with most analysts estimating India’s 2021 crude consumption to hover around the 4.8 – 4.9 mn bpd mark, still 9 – 10% higher than last year.
The ongoing localised lockdowns are, however, unlikely to severely impinge upon the economy’s growth and by extension, petroleum usage in the country.
Full article in the Economic Time: https://energy.economictimes.indiatimes.com/news/oil-and-gas/opinion-indias-oil-consumption-expected-to-take-a-marginal-hit-due-to-covid-19/82500089