As big of a catalyst as China will be for oil prices, India has even more potential to move the needle.
There are 1.3 billion people in India... around three times the combined population of the U.S. and Japan. India uses 1.5 billion barrels of oil per year, or about 4.1 million barrels per day. That’s just a fraction of the oil used in China. But India is expected to add another 241 million “people of working age” by 2030. And you can bet that most of them will be driving cars, watching TV, and making stuff. Soon, India will surpass China to become the world’s highest- populated country. Because of that, India is expected to be the fastest-growing consumer of crude oil in the world through 2040, adding 6 million barrels per day of demand (versus nearly 5 million barrels per day for China)...
Three main catalysts will drive oil demand higher in India...
1. Per capita oil consumption is driven by car ownership and transportation. 2. India is expected to build almost 20 miles of new roadways per day, further driving transportation and oil demand. 3. India’s GDP is growing so rapidly that consulting firm PricewaterhouseCoopers predicts it will overtake that of the U.S. by 2040. Rising GDP creates disposable income. Cars and scooters sales are on the rise.
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