Moody’s expects strong oil demand in China and India over next 5 years

According to a Moody's Investors Service study, China’s oil demand is expected to peak within the next 3–5 years. Meanwhile, India will maintain its lead in global energy consumption growth through 2030.

Moody’s attributes China’s current demand plateau to the country’s slowing economy, shrinking population, and diversification of energy sources. In contrast, India’s situation is quite the opposite. The forecasted 3–5% increase in oil demand is linked to positive developments in the country’s economic growth.

The International Energy Agency (IEA) projects India’s oil demand to rise from 5 million barrels per day in 2023 to over 6.5 million barrels per day by 2030.

According to analysts of the agency, India will continue to hold a leading position in the energy market through 2030. However, the country’s dependence on oil imports may increase due to low levels of domestic production.

Earlier, OilPrice.com journalists noted a 600,000 barrels per day reduction in China's crude oil imports. These changes undermine China's position as a key consumer of oil.