18-July-2024
Economy News
 
Demand for crude oil expected to peak – A positive for India?
10-Jul-2024

Recently oil has been on the news, with global demand for the commodity expected to peak by 2029, and subsequently contract (as reported by International Energy Agency). Additionally, with rising supplies, led by non- OPEC+ (Organization of the Petroleum Exporting Countries) producers, expected to surpass forecast demand from 2025 onwards, it could potentially weigh on prices through the end of the decade. Further, the use of clean and energy- saving technologies is accelerating the decrease in pace of growth in oil demand. India has traditionally been a net importer of crude oil with the value of its oil imports registering ~3x growth between FY2021 and FY2024. From India’s perspective, any downward movement in prices of crude oil could act as a positive as it would ease the nation’s import bill, and positively impact our current account and fiscal position in the long run.

News Source:- https://www.financialexpress.com/policy/economy-demand-for-crude-oil-expected-to-peak-a-positive-for-india-3548513/