Crude oil prices rebound sharply despite green energy hype, with India positioned centrally as the world's third-largest importer and a key demand driver. Surging consumption and strategic reserves bolster oil's relevance, challenging narratives of rapid fossil fuel decline.
Market Revival Context
Global oil markets witness a robust comeback, with Brent crude climbing above $75/barrel amid supply constraints and geopolitical tensions. India's voracious demand—projected at 5.6 million bpd by 2025—anchors this revival, as the nation balances renewables push with hydrocarbon reliance for economic growth.
Key Highlights
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Demand Dynamics: India consumes 5% of global oil; imports from Russia, US, and Middle East hit records, with strategic petroleum reserves expanded to 9.5 million tonnes.
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Price Momentum: OPEC+ cuts and Red Sea disruptions fuel 15% YTD rally; analysts forecast $80+ averages through 2026.
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India's Strategic Role: $15 billion refinery expansions (e.g., Ratnagiri); green hydrogen pilots coexist with diesel demand surge from EVs lag.
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Transition Realities: Renewables at 45% power mix by 2030, yet oil powers 90% transport; experts urge balanced investments.
Oil's enduring appeal underscores pragmatic energy security.
Sources: Reuters, Economic Times, IEA Reports.