The steep rise of Covid-19 infections in India will slash global demand for oil, leading to a sizeable glut, Norway’s biggest independent energy consultancy Rystad said.
The struggle in India, one of the world’s largest oil consumer, will slash an extra 575,000 barrels per day (bpd) of oil liquids demand in April and 915,000 bpd in May 2021, disturbing the almost-balanced global oil market, according to the energy consultancy.
“As infections continue to rise and its health system is overwhelmed, India’s oil demand could lose more ground going forward, making further downgrades possible, both on magnitude and duration,” Louise Dickson, senior oil markets analyst at Rystad said in a note dated April 28.
