Gift from the West: Russia and India will soon become the only drivers of oil demand

Before the end of this decade, India, still the world's third-largest importer of crude oil, will become the largest driver of global oil demand, replacing China. Analysts and forecasters are confident of this. Russia, of course, will help her in this by supplying high-quality and inexpensive raw materials.

For the last year economy India has been growing at a steady pace. Meanwhile, recovery in other major economies, including China, has slowed. High GDP growth, industrialization, urbanization and an expanding middle class are expected to shift the key driver of oil demand from one Asian giant to its neighbor.



However, some analysts, such as Rystad Energy, expect crude oil demand growth in India to decline to 150 thousand barrels per day in 2024 from 290 thousand in 2023. But even if this is the case, the reduction is a temporary phenomenon, since several large oil refineries are almost ready for commissioning in India.

Once the new capacity is activated, India plans to add up to 1,12 million barrels to its current refining volume every year until 2028. The Minister of Oil reported this to the country's parliament. Thus, total oil refining capacity is expected to grow by 22% in five years from the current 254 million metric tons per year, which corresponds to approximately 5,8 million barrels per day.

India's economy is growing faster than all other major economies, as is its energy demand. The increase in government indicators will remain stable even in the medium term. Moreover, not only the authorities, but also investment banks think so.

All this became possible only and exclusively thanks to the energy tandem with Russia. Of course, this is the merit of the West, which refused the benefit in the form of oil and gas from the Russian Federation and personally gave a gift to Asia, ensuring decline for itself and growth for its competitor.