• 2 minutes California to ban gasoline for lawn mowers, chain saws, leaf blowers, off road equipment, etc.
  • 6 minutes China and India are both needing more coal and prices are now extremely high. They need maximum fossil fuel.
  • 11 minutes Europeans and Americans are beginning to see the results of depending on renewables.
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days The Climate Scare Stories Began With Far Left Ideology Per GreenPeace Co-Founder
  • 13 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 1 min NordStream2
  • 15 hours Biden Sets Target Of 50% EV Share In U.S. Car Sales In 2030
  • 15 hours US intel warns China could dominate advanced technologies By NOMAAN MERCHANT October 22, 2021
  • 2 days Putin and Xi have decided not to attend the Climate Summit in Glasgow
  • 2 days "The Hidden Story About California's Container Ship Backlog" via Corbett Report
  • 2 days Storage of gas cylinders
A Successful Energy Transition Will Need Oil Demand Destruction

A Successful Energy Transition Will Need Oil Demand Destruction

While governments and international institutions…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Rystad Energy: India’s COVID Crisis Could Result In Global Oil Glut

India’s worsening COVID outbreak is set to disturb the nearly balanced global oil market, which will show a surplus of oil supply of as much as 1.4 million barrels per day (bpd) next month amid a sizeable loss of demand from the world’s third-largest oil importer, Rystad Energy says.

India has seen fuel demand decline in recent weeks as record-high new coronavirus infections are prompting lockdowns and curfews in many states in the country of 1.3 billion residents, limiting mobility and slowing business activity.

India’s combined demand for diesel, the most used fuel in the country, and for gasoline is set to plunge by as much as 20 percent in April compared to March, officials from refiners and fuel retailers told Bloomberg. Demand is further expected to decline in the coming weeks as curfews and localized lockdowns are likely to be extended.

The enormous health crisis in a major oil importer and consumer such as India has prompted Rystad Energy to significantly revise down its short-term estimate of global oil liquids demand. India’s crisis is expected to slash 575,000 bpd of oil demand in April and as much as 915,000 bpd in May, “disturbing the almost-balanced global oil market and building a sizeable glut,” the energy research firm said.

The surplus on the global oil market is seen at 900,000 bpd this month and at 1.4 million bpd next month, according to Rystad Energy.

India’s demand decline coincides with OPEC+ starting to bring additional supply to the market as of May 1. In a shortened and fast meeting earlier this week, the alliance didn’t change its decision to start raising output, signaling confidence in oil demand recovery elsewhere despite the surging COVID cases in India.

While Rystad Energy sees a glut coming, Goldman Sachs continues to believe that the market will take India’s crisis in its stride and will realize the biggest jump ever over the next six months. Goldman Sachs continues to see oil rising to $80 per barrel this summer and says that “The magnitude of the coming change in the volume of demand -- a change which supply cannot match -- must not be understated.”

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News