(Bloomberg) -- India is now the leading source of oil demand growth in Asia as Chinese consumption falters due to an economic slowdown and rising electric vehicle ownership, according to US Energy Information Administration forecasts.
India’s liquid fuels consumption is expected to climb by 300,000 barrels a day this year and next, driven by rising demand for transportation fuels, the US agency said Wednesday in its Short-Term Energy Outlook. China’s consumption forecast has been cut again in the latest report with this year’s growth at less than 100,000 barrels a day, though the EIA sees demand recovering next year.
China, the world’s top oil importer, faces limited consumption growth for transportation fuels this year due to rapidly expanding EV ownership, higher use of liquefied natural gas for trucking goods and decelerating economic growth, according to the EIA.
That has fostered a gloomy outlook for global demand, prompting the OPEC+ alliance to push back plans to restore production. Earlier this week, the Organization of Petroleum Exporting Countries reduced its global demand forecast for this year and next for a fourth straight month as it recognized China’s slowdown.
The EIA’s world consumption forecast remains little changed at 104.4 million barrels a day for next year. That compares to the 103.8 million barrels-a-day outlook from the Paris-based International Energy Agency in October.
--With assistance from Julia Fanzeres.
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