OPEC has said that though the global oil demand is expected to remain at the same levels as last year, India is expected to pull up demand. OPEC in its monthly report for July said that "In 2017, assumptions revolve around continuous economic growth, with India leading the region, coupled with steady retail prices. Within the region, India is seen to be the largest contributor to growth accounting for more than 40% of estimated growth."
The 14-member oil producing group noted that oil demand growth for 2017 is expected to be around 1.2 million barrels a day, broadly unchanged from the previous report to average 94.2 million barrels per day. Also the current account deficit (in India) continues to run at a very modest level, whereas in 2012 and early 2013 it was around $90 billion, lower than in past times, with most of the improvement driven by lower oil prices.
OPEC further stated that the risks for 2016 oil demand in Other Asia are currently skewed towards the upside as a result of possible overall economic improvements in India, the biggest oil consumer in the region, and the general economic performance of some other countries of the region. It added that demand for crude from the 14 OPEC Member Countries is expected to average 33.0 mb/d in 2017, representing a gain of 1.1 mb/d over the current year and compared to an expected increase of 1.9 mb/d this year.