India Set to Surpass China in Oil Demand Growth by 2025 with 3.2% vs. 1.7%, Adding 2 Million Barrels Daily

Dec 26, 2024, 03:27 PM

India is poised to become the leading driver of global oil demand growth, surpassing China for the first time in 2024. According to a recent report by the International Energy Agency (IEA), India's oil consumption is expected to grow by 3.2% year-on-year by 2025, compared to China's anticipated growth of 1.7%. This shift is attributed to a declining property sector and a rapidly expanding electric vehicle market in China, which are reshaping its oil dominance. The IEA forecasts that India will add nearly 2 million barrels per day to its oil demand by 2035, solidifying its position as a key player in the global oil market. As India's oil demand growth outpaces that of China, efforts to diversify crude sources are likely to accelerate.