OPEC stated in a latest monthly update that in October, India’s crude oil demand was broadly flat y-o-y, following a 350 thousand barrels per day or tb/d increase in the previous month. Y-o-y declines in naphtha and the ‘other products’ category largely offset a y-o-y increase in gasoline, LPG and jet/kerosene demand. Regarding specific product demand, naphtha saw the largest y-o-y contraction of 81 tb/d, down from a decline of 28 tb/d, y-o-y, the previous month. Demand for naphtha was weakened by a decline in demand from the petrochemical sector. Demand for the ‘other products’ category, including bitumen, petroleum coke and lube oil, declined by 43 tb/d, y-o-y, down from an increase of 127 tb/d, y-o-y, seen the previous month. While petroleum coke accounted for the largest part of the y-o-y decline, bitumen registered growth. Demand for residual fuel oil eased by a slight 8 tb/d, y-o-y, marginally below a y-o-y decline of 5 tb/d seen in September.
Meanwhile, demand for diesel eased marginally by 5 tb/d, y-o-y, down from the growth of 111 tb/d, y-o-y, seen the previous month. The decline in diesel demand in October is mainly attributed to prolonged monsoon rains and elevated consumption levels last year that set a high historical base. Among transportation fuels, gasoline demand saw the largest increase of 72 tb/d y-o-y, broadly in line with the 75 tb/d, y-o-y, increase observed in September. Demand for gasoline was driven by increased private mobility, with a report from the Federation of Automobile Dealers Associations (FADA) showing that the domestic sale of passenger vehicles registered growth of 11.35%, y-o-y, in October. Jet/kerosene demand inched up by 7 tb/d, y-o-y, marginally up from flat y-o-y growth seen the previous month.