India’s oil demand is expected to rise by 5.8 million barrels per day (bpd) by 2040, accounting for about 40 percent of the overall increase in global demand during the period, OPEC’s Secretary General, Mohammed Barkindo, said on Tuesday.
“India is projected to see the largest additional oil demand (3.7 percent per annum) and the fastest growth in the period to 2040,” Barkindo said .
He added that the global oil sector needed $11 trillion in investment to meet future demand by 2040.
Global oil demand is expected to increase by 14.5 million bpd from 2017 to 111.7 million bpd in 2040, Organization of the Petroleum Exporting Countries said in its latest report, issued in September.
Retail fuel prices in India, the world’s third biggest oil consumer and importer, recently touched record levels due to high oil prices and a weakening rupee, leading to protests across the country.
Barkindo said consumers including India have expressed concerns on the outlook for supply.
“Our view is that the market is currently adequately supplied and well balanced. For 2019, there is the potential for an imbalance, due to larger growth in supply,” he said.
Barkindo’s views echoed those of Patrick Pouyanne, Chief Executive of French oil and gas group Total, who said on Tuesday that he expected demand for crude to be lower and supply to be higher in 2019.