Oil will return to a starring role in India
Oil will return to a starring role in India. The car-centric society is set to see oil demand bounce back strongly in 2021 helped by fiscal stimulus as it leaves Covid-19 in its rear-view mirror. Any shift away from the fossil fuel towards cleaner energy will be slow going.
Oil’s importance to India’s needs is not necessarily a risk since energy security goes both ways. India is unabashedly reliant on oil and is a key buyer of crude from big suppliers like Saudi Arabia and Iraq, while the OPEC producers equally depend on India’s appetite for Middle East grades. The relationship is mutually beneficial and the ties between India and top producers are only getting closer.
A 1.2 million barrel per day (b/d) mega-refinery is due to start operations in the middle of the decade with the help of Saudi Arabia’s state-owned behemoth Saudi Aramco and the United Arab Emirates’ national oil company ADNOC.
