Fuel demand declined 11.4% in November after festival boost

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India’s gasoline consumption fell in November after scaling a seven-month peak within the previous month, authorities information confirmed, as demand eased on this planet’s third-biggest oil shopper after the pageant season.

Gas consumption, a proxy for oil demand, totalled 17.13 million tonnes, down 4% from October and was 11.4% decrease than a 12 months ealier, information from the oil ministry’s Petroleum Planning and Evaluation Cell confirmed.

Gas demand rose in October to a seven-month peak, whereas gasoline gross sales surged to an all-time excessive, as festivals boosted mobility and financial exercise.

“Drop-off in demand factors to seasonal elements,” stated Ed Moya, senior market analyst at brokerage OANDA.

“Nonetheless, gasoline demand outlook stays upbeat going into 2022 as COVID isn’t actually impacting the nation and [there is] good progress outlook on continued reopening momentum.”

India’s pageant season led to early November.

Consumption of diesel, which accounts for about 40% of India’s refined gasoline gross sales, additionally eased 1.7% month-on-month to six.51 million tonnes and was down 14% in contrast with November 2019.

Diesel gross sales slid 7.6% from the identical interval final 12 months.

Gross sales of petrol, decreased by about 0.7% year-on-year to 2.65 million tonnes, however had been 4.4% increased from November 2019. They had been down 3.6% from October.

Asia’s third-largest financial system, final month stated it could launch 5 million barrels of oil from its strategic reserves in coordination with different patrons together with the U.S., Japan and South Korea.