India to drive nearly half of global oil demand growth
What's the story
Igor Sechin, the CEO of Russian oil giant Rosneft, has predicted that India will account for nearly half of the global increase in oil demand over the next decade. Speaking at the St Petersburg International Economic Forum, Sechin said India holds a "special place" in the world oil market. He cited International Energy Agency estimates that India's oil consumption could reach nearly eight million barrels per day by 2035, a 44% increase.
Economic impact
Economic benefits of Russian oil supplies
Sechin also highlighted the economic benefits of Russian oil supplies to India and China since April 2022. The cumulative value of these benefits has exceeded $40 billion, he said. He stressed that Russia's economic partnership with both countries ensures stable energy supplies and that it cannot be excluded from global supply chains.
Supply concerns
Warning on potential food crisis
Sechin warned that disruptions in supplies through the Strait of Hormuz could lead to higher fertilizer and food prices, with India being one of the most vulnerable countries. He said fertilizer prices had risen by nearly 60% in the first four months of this year. Sechin also warned that supply disruptions and a lack of strategic reserves in affected markets could heighten the risk of a global food crisis.