India to surpass China in oil demand growth over next decade: Moody's Ratings
Moody's Ratings in its latest report has said that China drove global oil demand growth over the last decade, but now India is poised to take the lead in demand growth over the next decade. China and India are the No. 2 and No. 3 oil consumers in the world. But there are notable differences in demand growth in the two countries.
It stated demand growth and import reliance will be higher in India. It said ‘Demand will grow faster in India than in China over the next decade, as China's economic growth slows and penetration of new energy vehicles accelerates. Consumption of crude oil - the raw material for making fuels like petrol and diesel - in China will peak in the next 3-5 years, while in India, Moody's expect annual growth of 3-5% in the same period.
Stating that both countries rely heavily on oil and gas imports, the rating agency said it expects China's reliance on oil imports to fall, reflecting slower demand growth and increased domestic production. India's reliance on imports will increase if it is unable to stem a production decline. Moody's said China's larger oil and gas consumption underpins the scale of its national oil companies (NOCs), which will likely outpace their Indian peers in production growth over the next 3-5 years.
