Published By : 01 Dec 2015 | Published By : QYRESEARCH
The United States Energy Information Agency recently published a data sheet on global oil consumption, which provided a clear outlook of where the global oil industry is headed. The data showed that even though the oil consumption has witnessed a substantial increase in Asia, led by China; the Middle East, led by Saudi Arabia; and Oceania, the rest of the world region has been experiencing a persistent decline in consumption rates of oil over the past 10 years. This region comprises Russia, the US, other former Soviet Union countries, and Europe.
The data on the global consumption in addition to the current oversupply of oil indicates that the overall consumption rate of oil is likely to continue to be weak even next year. However, even with oil demand slowing down in most parts of the world, India continues to surpass the expectations of consumption rates of oil.
India’s economic growth rate of an estimated 7.3 per cent for the year ending in March 2015 is set to surpass that of China for the very first time. In its World Economic Outlook, the International Monetary Fund forecast that India is likely to emerge as the most rapidly developing large economy in the world. In its report, the International Monetary Fund said that growth in India will benefit from lower commodity prices, a pickup in investments, and recent policy reforms. At the moment, crude oil does not have any prime substitute in the country.
The rise in number of internal combustion engine vehicles, the consumption of diesel and gasoline has experienced a sharp rise over the past 10 years. Together, the two fuels account for nearly 73 per cent of the overall sales of petroleum products in the country. Based on findings of the Petroleum Planning and Analysis Cell, sales of diesel in 2015 rose by 5.64 per cent while sales of gasoline went up 14.77 per cent.