India vs China / China has dominated here for decades, now India has caught up the pace!

India vs China: China has dominated the global oil and gas market in the last decade, but now this situation is changing. According to global commodity company Trafigura, India's oil demand will soon overtake China. Rapid industrialization, infrastructure development, expanding middle class and increasing travel needs in India are leading to a significant increase in oil and gas demand. On the other hand, the slowdown in China's economy and the increasing number of electric vehicles are reducing oil demand there.

India vs China: Change in oil demand

At the APPEC event of S&P Global Commodity Insights, Trafigura Chief Economist Saad Rahim said that if China's stocking (oil storage) is removed, India's oil demand will clearly overtake China. Urbanization is happening rapidly in India and oil consumption is also increasing along with the increase in people's income. In contrast, oil demand in China is now growing at a slow pace, and this growth is mainly limited to the petrochemical industry.

China's oil storage: Strategic move

Even though oil demand in China is slowing down, it is storing oil on a large scale to increase its Strategic Petroleum Reserve (SPR). According to Frederic Lasserre, research head of Gunvor Group, China has been adding about 2 lakh barrels of additional oil per day to its reserves for the last few months. This strategy is to ensure future energy security. However, Lasserre warned that this storage may not last long, and if the supply of oil increases in the market, it will be challenging to handle it.

Oil demand in 2026: Global scenario

According to Saad Rahim of Trafigura, the growth rate of global oil demand will slow down further in 2026, falling to less than 1 million barrels per day. During this time, OPEC+ countries are increasing their production capacity, which may increase the supply of oil in the market. This could put pressure on oil prices, which is a major factor in the global economy and special Missouri

Opportunities and Challenges for India

India's growing demand for oil reflects the country's economic progress. According to a recent Moody's report, India's GDP could grow at a rate of 6.3% in 2025 and 6.5% in 2026, making India the fastest growing economy among G-20 countries. There is a continuous increase in oil demand due to transportation and industrial needs, and government oil companies are investing in increasing their refining capacity.

However, this growing demand also brings a great responsibility for India. The country has to take strategic steps to strengthen its energy security. Also, focus has to be on adopting renewable and alternative energy sources so that dependence on oil can be reduced.