India is replacing China as the centre of the world’s oil demand growth as its economy expands faster than any other major country. India’s oil demand grew by 300,000 barrels a day last year, double the average rate in the previous decade, according to a report by The Oxford Institute for Energy Studies. Indian Prime Minister, Narendra Modi, has made energy security a priority for the nation, which imports 80 per cent of its oil requirements.
The growth has led to new deals last week between Rosneft, the state-run producer which pumps 40 per cent of Russia’s oil, and three Indian state-run companies are linked to the East Siberia-Pacific Ocean pipeline and are set to be closed by September. Experts say there is a simple explanation for all the recent oil-supply agreements. “In an oversupplied market, every producer is looking for buyers all around,” said to Ehsan Ul-Haq, analyst at KBC Advanced Technologies in London. “Russia also wants to diversify its buyers,” he said, quoted by Bloomberg.
In contrast, China’s growth has slowed to 300,000 barrels from an average 500,000 barrels in the decade to 2013 as the government moves the economy away from heavy industry, according to The Economic Times.