India’s oil demand rose in October

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After an incredible two-digit jump in August, India’s oil and jet fuel demand showed a considerable decline in September caused by widespead rains and regional unrest that took toll on transport. Still in October market analyst expect a rebound due to the end of the monsoons.

In September India’s overall oil products demand showed a drop by 0.8 percent year on year to 3.82 million barrels per day, according to the latest provisional data from the Petroleum Planning and Analysis Cell.

"The conclusion of seasonal rainfalls, the onset of winter, and improving industrial demand amid festive season should propel growth in coming months, notwithstanding any increases in crude prices," said Sri Paravaikkarasu, senior consultant and Asia downstream specialist at Facts Global Energy, adding that "reasonably healthy levels of rainfalls, riots in the southern states and weak stockpiling activities led to a sharp year-on-year decline in gasoline and gasoil demand."

Analysts remind that the decline of oil demand is typical for September as it is caused mainly by heavy rains towards the end of the June-September monsoon season. This year water sharing disputes between two southern states and political unrest in a northern state added to the fall.