How India’s Crude Oil Imports, Production, Demand Impact Prices

India’s crude oil imports

India’s Petroleum Planning and Analysis Cell estimated that the country’s crude oil imports rose 0.60% to 4.2 MMbpd (million barrels per day) in July 2017 from the same period in 2016.

India’s crude oil imports averaged 4.0 MMbpd in 2016. It’s expected to average about 4.3 MMbpd in 2017. A rise in India’s crude oil imports is bullish for crude oil (PXI) (ERX) (DIG) (OIH) prices. India is the third-largest consumer of crude oil in the world. Higher crude oil prices have a positive impact on oil producers such as Carrizo Oil & Gas (CRZO), PDC Energy (PDCE), and Continental Resources (CLR).

How India’s Crude Oil Imports, Production, Demand Impact Prices

India’s crude oil production estimates

India’s crude oil production averaged 0.74 MMbpd in 2016. Its crude oil production is expected to fall 2.7% to 0.72 MMbpd in 2017. The fall in production would drive imports.

India’s crude oil demand estimates

According to OPEC’s (Organization of the Petroleum Exporting Countries) Monthly Oil Market Report, India’s crude oil demand averaged 4.4 MMbpd in 2016. Its crude oil demand is expected to rise 3.0% to 4.5 MMbpd in 2017.

OPEC also estimates that India’s crude oil demand will more than double to 10.0 MMbpd by 2040. The IEA (International Energy Agency) projects that India’s crude oil demand growth rate will be the highest by 2040.

Impact

High demand from India could have a positive impact on crude oil (IXC) (IYE) (DBO) prices. High crude oil prices could have a positive impact on the margins of producers such as Goodrich Petroleum (GDP) and Stone Energy (SGY).

In the next part of this series, we’ll look at the impact of global crude oil supply outages on crude oil prices.