Shifting Oil Demand: India Takes the Lead as China Slows

India is set to overtake China in oil demand growth over the next decade, driven by robust economic expansion and infrastructure investments. Moody's report highlights India's increasing reliance on imports, while China focuses on self-sufficiency and green energy transition. Challenges and government policies shape the landscape.

India is projected to eclipse China in oil demand growth in the coming decade, according to a report by Moody's Ratings. This shift marks a significant change in global energy consumption dynamics as China slows due to its economic transition and moves towards cleaner energies.

Despite both nations' dependency on oil and gas imports, China prioritizes self-sufficiency amid slowing demand and burgeoning domestic production, while India's import reliance is set to increase due to a production decline. This diverging trajectory underscores India's soaring industrial expansion and infrastructural investments.

Moreover, the report notes the varied investment strategies of the national oil companies (NOCs), with Chinese NOCs leading in scale and production due to extensive investments, whereas Indian NOCs focus on refining capacities to meet the surging domestic demand.

(With inputs from agencies.)