Growing Asian middle class to propel oil use: study

NEW YORK (Reuters) – A rapidly expanding middle class in China and India will provide the main engine for world oil demand growth in the coming years as families in developing nations buy more cars and appliances to go with their thicker wallets, according to a study released on Thursday.

The outlook could place a firm floor under global oil prices into the next decade after the first decline in world energy demand in a quarter century pulled them to lows near $30 a barrel this winter.

“The dramatic growth in the middle class, concentrated in China and India, provides a significant upside to the outlook for global oil demand growth in the next several years,” according to PIRA, a New York-based oil consultancy.

“New entrants to the middle class are just the group most likely to produce rapid increases in oil and other energy demand,” PIRA said in the study obtained by Reuters.

Reuters