NewKerala.com

Key Points

S&P Global warns that geopolitical tensions and shifting trade policies could reduce global oil demand, with China and the US seeing the steepest declines. India, however, remains a bright spot, driving demand growth while diversifying its crude imports away from the Strait of Hormuz. OPEC+'s recent output increase has already caused a 20% drop in Brent crude prices, with further declines expected. Meanwhile, India's renewable energy push and strategic trade positioning reinforce its growing influence in global energy markets.

Key Points: S&P Global Warns Geopolitical Tensions May Hit Global Oil Demand

  • Geopolitical risks and US tariffs threaten global oil demand
  • India leads oil demand growth despite global slowdown
  • OPEC+ output hike triggers 20% Brent crude price drop
  • India cuts Hormuz reliance to 41% via Russian crude imports
2 min read

S&P Global warns geopolitical tensions may hit global oil demand

S&P Global report warns geopolitical tensions and trade shifts could reduce oil demand, with India emerging as a key growth driver amid global uncertainty.

"Geopolitical tensions and shifting trade policies are slowing global growth, potentially reducing oil demand. – Premasish Das, S&P Global"

New Delhi, June 30

The latest report by S&P Global highlights that geopolitical tensions and shifting trade policies could potentially have a negative impact on the global oil demand.

New Delhi [India], June 30 (ANI): The latest report by S&P Global highlights that geopolitical tensions and shifting trade policies could potentially have a negative impact on the global oil demand.

Premasish Das, Executive Director for Oil Markets Research, noted that geopolitical tensions and shifting trade policies, including U.S. tariffs, are slowing global growth, potentially reducing oil demand. China and the U.S. will see the biggest drop in refined fuel consumption. Despite this, India is expected to lead global oil demand growth, making diversification of crude imports a strategic necessity.

Additionally, OPEC+ recently raised oil output by 411,000 b/d, triggering a 20% drop in Brent crude prices. At the same time, conflict between Iran and Israel briefly pushed prices above $80/b. The average oil price for 2025 is now forecasted at $68/b, though increased supply could bring it below $60/b by year-end.

On the Indian side, the country's trade influence is also growing. Rahul Kapoor, Global Head of Shipping Research, highlighted India's reduced reliance on the Strait of Hormuz, down from 55% in 2019-2022 to 41% in 2024, due to rising Russian crude imports.

He stressed that global trade strategy must now consider geopolitical risks and supply chain reconfiguration, placing India at a strategic advantage.

On energy transition, Eduard Sala de Vedruna emphasized India's push to reach 500 GW of renewable energy capacity by 2030, though S&P expects the target to be met by 2032. The current capacity has surpassed 200 GW. While challenges like infrastructure and regulatory hurdles remain, government support and private investment are accelerating progress.

Jenny Yang, Head of Power and Renewables Research, projected an 80% global rise in power demand by 2050. In India, non-fossil fuels are expected to make up 77% of power capacity by then.

With strong policy support, investment, and international cooperation, India is poised to become a cornerstone of global energy and trade in the decades ahead.

- ANI

Share this article:

Reader Comments

S
Sarah B
Interesting how India reduced Hormuz reliance from 55% to 41%! Russian oil imports helping diversify is smart geopolitics. But will this affect our relations with Middle East countries long-term? Need balanced diplomacy.
A
Arjun K
Petrol prices still too high for common man! If global prices falling, why not reduce rates at pumps? Government should pass benefits to public instead of increasing taxes. #FuelPrices
P
Priya S
The renewable energy progress is impressive! 200GW already achieved shows India's commitment. But rural areas still face power cuts - hope infrastructure improves soon. Solar energy can transform villages if implemented properly.
M
Michael C
Respectfully disagree with some optimistic projections. While India's energy growth is remarkable, the report overlooks ground realities - land acquisition issues, transmission losses, and state-level policy inconsistencies that could delay targets.
K
Kavya N
Good to see India becoming energy independent slowly! 👏 The shift from Middle East to Russian oil shows smart strategy. But we must invest more in electric vehicles and charging infra to reduce oil dependency completely.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50