MUMBAI (Commodity Online): Indian oil demand increased by 11.2% y/y in November to a record high, buoyed by record high diesel sales, said Barclays capital in a research note.
According to Barclays, Indian oil demand data for November was an extremely strong one, pegging domestic sales at a record high of 3.333 mb/d, constituting a y/y increase of 335 thousand b/d (11.2%), the strongest pace of growth in exactly four years. Diesel demand was once again the key driver of the overall growth, also coming in at a record high of 1.430 mb/d, up y/y by 16.7%, the highest growth rate seen since June 09.
Diesel continues to be buoyed by demand from the power sector and rising diesel driven auto sales. With diesel prices regulated by the government and gasoline prices floated at international market rates, the disparity between the two has led to a huge push towards diesel fired automobiles in the country.
