India’s oil demand outlook darkening as economy limps along: Fitch

Fitch Solutions has made a further downward revision to India refined fuels demand forecast for 2020 from minus 9.4 per cent to minus 11.5 per cent in line with further deterioration in the country’s economic outlook.

Its economists now forecast real GDP to contract by 8.6 per cent in FY21, down from minus 4.5% previously. In the first quarter of FY21, GDP contracted by 23.9 per cent, the steepest contraction on record.

“The domestic COVID-19 outbreak shows no signs of abating with daily cases continuing to accelerate. While the nationwide lockdown in place since March 25 was lifted on May 31, state-level restrictions remain in place and will likely drag on the economic recovery,” said Fitch.