The Organization of Petroleum Exporting Countries (OPEC) forecast India’s oil demand to accelerate by 0.06 million barrel per day (mb/d) in 2026 from the comparable period last year, and a further 0.4 mb/d in 2027 primarily driven by an overall healthy economic momentum and sustained demand for hydrocarbon fuels.
However, it trimmed their forecast for growth in global oil demand from the previous month. It now forecasts it to grow by approximately 0.4 md/d in 2026 and rebound to grow by about 2.4 mb/d in 2027.
In their monthly update, OPEC observed that India’s domestic growth momentum stayed resilient buoyed by “robust domestic demand and strong services” notwithstanding global trade uncertainties and geopolitical headwinds.
OPEC’s forecast of India’s oil demand accelerating by 0.06 mb/d to an average 5.7 mb/d in 2026 primarily hinges on gasoline and diesel consumption staying elevated with increased required for on-road mobility and higher vehicle sales.
“Diesel demand is anticipated to gain additional support from strong manufacturing and agricultural activity. Demand for residual fuel and jet/kerosene is expected to increase marginally,” it stated, adding that demand for LPG and naphtha could ease.
In the subsequent year, it forecasts strong macroeconomic fundamentals alongside government support for households and anticipated new petrochemical capacity additions to further elevate demand for oil by about 0.4 mb/d from 2026 to 6.1 mb/d.
Published – September 10, 2026 09:23 pm IST
