BENGALURU: The steep rise of Covid-19 infections in India will slash global demand for oil, leading to a sizeable glut, Norway’s biggest independent energy consultancy Rystad said.
“As infections continue to rise and its health system is overwhelmed, India’s oil demand could lose more ground going forward, making further downgrades possible, both on magnitude and duration,” Louise Dickson, Senior Oil Markets Analyst at Rystad said in a note dated April 28. However, coronavirus cases have surged in India, leading to curbs on movement across the country, a move analysts say could hit fuel demand in the world’s third-largest oil importer.
The sudden and very strict localised lockdowns imposed over the past few days will result in a 13% demand drop in India in April compared to March 2021, Rystad said.