OPEC Raises 2023 Global Oil Demand Forecast To 2.5 Million Barrels Per Day

The report highlights that India, alongside Brazil and Russia, is expected to surpass expectations, benefiting from improvements in domestic demand and external trade.

In September, India’s oil demand rose significantly to 3,20,000 barrels per day, driven by growth in the ‘other products’ category, primarily bitumen and lube oil, attributed to road construction activity.

The report anticipates continued strength in India’s oil demand in Q4 2023, supported by robust annual GDP growth and government proposals to increase capital spending on construction and manufacturing activity. Post-monsoon harvesting and construction activity are additional factors contributing to expected oil demand growth.

Forward-looking indicators, such as strong manufacturing and service PMIs, suggest a positive outlook for near-term oil demand. OPEC forecasts a year-on-year growth of 2,43,000 barrels per day in India’s oil demand for Q3 2023.

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