India's oil and gas demand could disappoint in 2023

In many ways, global energy demand is boosted by India, which economic growth could be compared with the Chinese one. It positively affects the gas and oil market’s sentiment. However, the situation may change. Central banks all over the world continue to raise interest rates to fight inflation, despite the potential undermining of economic growth. 

A tighter monetary policy has already affected India. Higher interest rates have made trade flows weaker, and this in turn has provoked a decline in energy demand. It was reported by Joe Kemp of Reuters.

Despite the fact that the country's oil consumption between January and November hit a new record of 201 million tons, manufacturing output began to fall. The reason is that India's central bank raised interest rates following others. 

India is among the most dependent countries on oil and gas imports. More than 80% of demand is covered by Indian imports. That is why price changes have such a strong impact on the country. In case the prices rise, demand will fall.