Page 136 - CW E-Magazine (27-5-2025)

Hydrocarbons

percent, helped by rising energy needs robust economic growth is expected to port fuels, with strong expectations for
in the world’s fastest growing economy. continue, driven by ongoing consumer manufacturing and growth in petrochemi-
This is projected to further rise to 5.99-mn spending, investment and government cal feedstock requirements, is expected
bpd in 2026, growing at 4.28 percent. support for key sectors,” the ‘OPEC to support overall oil demand growth,”
Monthly Oil Market Report’ said. the report said. “Overall, in 2025, oil
The demand growth is higher than 1.5 product demand in India is expected to
percent expansion projected in China’s While the most recently introduced grow by 188,000 bpd, year-on-year, to
oil demand in 2025 and 1.25 percent in US tariff s may have an impact on Indian average 5.7-mn bpd.”
2026. But in absolute terms, the US will GDP growth, some of these impacts are
continue to be the biggest oil consumer expected to be compensated for by fi scal In 2026, ongoing trade-related nego-
with a demand of 20.5-mn bpd in 2025, and monetary stimulus measures, it said, tiations are expected to reduce currently
followed by China (16.90-mn bpd in adding forward-looking indicators point announced tariff s, limiting the impact.
2025 and 17.12-mn bpd in 2026). India is towards strong economic dynamics. “India’s economy is expected to con-
the third largest consumer. tinue expanding amid strong manu-
“Accordingly, the outlook for the near facturing and service sector activities,
Despite slower growth, OPEC term provides further positive signals for supported by a continuation of current
expects global oil demand to rise by steady oil demand in India. Diesel is pro- government support in key sectors amid
1.3-mn bpd in both 2025 and 2026, jected to continue to be the main driver infl ation easing. Accordingly, oil de-
unchanged from its previous forecast. of demand growth,” the report said. With mand is projected to grow by 246,000
massive road expansion underway, bitu- bpd, y-o-y, to average 6.0-mn bpd, sup-
“Looking ahead, India’s economy men demand is seen growing strong. ported by robust economic growth amid
continued to expand at the beginning healthy transportation and manufactur-
of the year. The current momentum of “Additionally, robust growth in trans- ing activities,” it added.

FEEDSTOCK SOURCING
US becomes India’s fourth largest crude oil supplier

in April

The US nearly doubled its crude oil imports from the US, following pressure share elsewhere-in East Asia and Europe,”
supply to India in April compared to year from President Donald Trump to address Mr. Rathod said. “With the rising output
earlier, overtaking the UAE to become the trade imbalance between the two from OPEC+, we should see the return
India’s fourth-largest supplier. countries. of Saudi barrels into Indian imports,”
he added.
India’s imports of US crude grew “As for US fl ows growing, it has
to 0.33-million barrels per day (mbd) in more to do with slowing US exports to OPEC+, a group of nearly two dozen
April, up from 0.17-mbd in the same Europe-especially due to alternative light- countries led by Saudi Arabia and Russia,
month last year and 0.24-mbd in March, sweet supplies closer to Europe and recent is increasing supplies by about 400,000
according to energy cargo tracker, Vortexa. refi nery closures-pushing these barrels barrels per day from May and by the same
toward other markets, mainly Asia and amount from June. Most of the additional
This gave the US a 7.3% share in India,” said Mr. Rohit Rathod, analyst at supplies are expected to come from
India’s crude imports in April-ahead of Vortexa. India accounted for about 8% of Saudi Arabia, which has signifi cant
the UAE’s 6.4%, but behind Saudi US crude imports by all countries in April. spare capacity.
Arabia’s 10.4%, Iraq’s 19.1% and Russia’s
37.8%. Compared to March, the shares Mr. Rathod attributed the decline in Russia remains the top supplier to
of Russian and Iraqi imports improved UAE crude fl ows to India in April to high India, primarily due to the discounts it
in April, while those of Saudi Arabia and exports from the Gulf country in March. off ers to Indian buyers. India’s private
the UAE declined. sector refi neries, operated by Reliance
Imports of Saudi oil also fell in April, Industries and Rosneft-backed Nayara
India aims to increase its energy “most likely as they try to regain market Energy, remain its primary customers.

136 Chemical Weekly May 27, 2025

Contents Index to Advertisers Index to Products Advertised