NEW YORK ( Karvy) -- Stocks like China Petroleum & Chemical (SNP - Get Report) and PetroChina (PTR - Get Report) from China and Oil India Limited, Oil and Natural Gas Co. and Reliance Industries from India are stocks to watch in the energy space as crude oil prices reached $90 a barrel earlier this month.
Emerging economies such as China and India are sustaining oil demand, given the flat scenario in most of the developed countries. Wood Mackenzie, the independent energy and metals research consultant firm, suggests that both diesel and gasoline demand in China is growing 8% annually. In India, diesel and gasoline are growing at 7% and 11%, respectively.
In fact, during the past decade, energy needs in China and India have doubled with the countries becoming the second- and fourth-largest consumers, respectively.
Global oil demand is expected to breach the peak levels reached in 2007, according to Wood Mackenzie. Global oil demand in 2010 is likely to reach an annual average of 86.7 million barrels a day (mbd) and grow further to 88.1 mbd in 2011. Worldwide, oil demand is poised to grow by 2.5 mbd in 2010, one of the largest growth rates on record, according to the consulting firm.