5 Jun 2015
India to supersede Japan as world’s third largest oil consumer - IEA
FXStreet (Mumbai) - According to data from the International Energy Agency (IEA), India’s just about to outpace Japan as the world’s third largest oil consumer this quarter although the latter is expected to win back its place by the end of the year.
From being millions of barrels behind Japan in 2012, India has built up a steady appetite for oil, backed by an expanding economy and a robust demand driven by factories and the automobile sector.
IEA further estimates that India’s oil demand will rise to 4.7 million barrels per day in 2020, at a compounded annual growth rate (CAGR) of 3.4%.
In its 2015 Medium Term Oil Market report, the agency said that “despite the Indian economy’s persistent reliance on still much less energy-intensive services for the majority of its economic growth, expectations of lower oil prices should stimulate additional transport fuel demand.”
Most of the increase in demand would be driven by transportation fuels: Car sales in India increased 18.14% in April, the highest in around three years driven by a strong urban and semi-urban markets.
Japan, on the other hand, has come out of a recession and is relying heavily on nuclear power. In fact, the country’s oil use is estimated to drop 33% by 2030 to around 2.5 million barrels per day, as the government pushes for more nuclear power.
From being millions of barrels behind Japan in 2012, India has built up a steady appetite for oil, backed by an expanding economy and a robust demand driven by factories and the automobile sector.
IEA further estimates that India’s oil demand will rise to 4.7 million barrels per day in 2020, at a compounded annual growth rate (CAGR) of 3.4%.
In its 2015 Medium Term Oil Market report, the agency said that “despite the Indian economy’s persistent reliance on still much less energy-intensive services for the majority of its economic growth, expectations of lower oil prices should stimulate additional transport fuel demand.”
Most of the increase in demand would be driven by transportation fuels: Car sales in India increased 18.14% in April, the highest in around three years driven by a strong urban and semi-urban markets.
Japan, on the other hand, has come out of a recession and is relying heavily on nuclear power. In fact, the country’s oil use is estimated to drop 33% by 2030 to around 2.5 million barrels per day, as the government pushes for more nuclear power.