Outlook for global oil demand growth for FY27 remains extremely vulnerable to geopolitical, macro-economic and policy risks, said Reliance Industries in annual report for FY26.
“Global oil demand growth is expected to be sluggish due to higher oil prices and economic slowdown in FY 2026‑27 amid Middle East conflict. Refinery and oil infrastructure damages which caused product supply losses are likely to take a longer period to recover, resulting in continual volatility in the market,” the company said.
In FY 2026-27, volatile product and feedstock prices, supply disruptions from the West Asia, Indian government’s directives on SAED, petrochemical feedstock usage and duty exemption on key petrochemical products may weigh on domestic demand and margins, if said.
In FY 26, global oil demand growth remained highly volatile amid shifting macroeconomic and geopolitical conditions. Although demand momentum remained strong through first three quarters, it was sharply disrupted in March 2026 by the Middle East conflict. The ensuing Middle East crisis heightened uncertainty, disrupted trade flows, and weakened consumer demand.
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The FY 26 oil market was shaped by rising OPEC+ supplies, evolving sanctions on Iran and Russia, escalating trade‑tariff pressures, and the outbreak of the Middle East conflict, which together dampened demand growth and intensified price volatility, it said.
Navigating O2C Landscape
RIL said the country’s petroleum demand is experiencing sustained growth on the back of government infrastructure push for greenfield access-controlled highways, rising vehicle population, increased industry activity and passenger and freight travel on roads and airways.
In his letter to shareholders, Mukesh D Ambani , chairman and managing director, RIL said Oil-to-Chemicals (O2C) business, continues to demonstrate resilience and relevance even in a rapidly changing
global energy landscape. “We are transforming this business towards higher-value materials and future ready applications—ensuring it remains competitive in a world that is transitioning to new forms of energy.”
Ambani said with a focus on maximising recovery, deploying advanced technologies, and exercising disciplined capital allocation, they are committed to responsibly unlocking the value of India’s natural resources
“Despite a challenging margin environment with heightened disruptions in trade flows due to global geopolitics, RIL effectively navigated the business environment. Cracks in key fuel categories improved this
year compared to last year due to steady demand growth, an uncertain geopolitical, policy environment and increased refinery outages,” he said.
Next Frontier
Ambani said they have initiated Reliance Intelligence with vision to ensure that the power of artificial intelligence is not concentrated, but democratised. “We aspire to create sovereign AI capabilities that are designed in India, scaled in India, and made accessible to every Indian—empowering individuals, enterprises, and institutions alike,,” he said.
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In new energy, RIL said its battery energy storage system (BESS) giga-factory is in advanced commissioning. RIL will be operationalising 40 GWh of annual capacity, with a goal to reach 100 GWh. With civil construction complete and equipment installation underway, production will ramp through the second half of 2026, focused on LFP (Lithium Iron Phosphate) chemistry for utility-scale BESS and mobility applications, it said.
RIL said it has started work on its electrolyser giga-factory, commissioning and ramping up in phases over the next few quarters. The business is working towards building 3 MMTPA (million metric tones per annum) of green hydrogen equivalent capacity by 2032 for global markets. The company has also entered into a green ammonia long-term offtake agreement with Samsung C&T Corporation, with supply over a 15-year period commencing in the second half of FY 2029.
TOPICSCrude oilThis article was first uploaded on May twenty-eight, twenty twenty-six, at forty-two minutes past six in the evening.