Currently, we expect India’s refinery runs to rise by 370,000 b/d in 2022 on stronger domestic demand as economic activity picks up, coupled with rising export demand. Obviously with the emergence of new omicron variant, there is a risk of downward adjustment to our outlook.
The impact of omicron, if it spreads wildly will most likely be felt in the first half of 2022 as governments in the region tighten their measures to contain the spread of the new variant. However, any lockdowns are likely to be localized and more targeted, and demand impact is likely to be more modest than last year.
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