Reliance Industries has issued a forecast predicting a substantial increase in global oil demand for 2026, projecting growth of 0.9 million barrels per day. The energy conglomerate's prediction highlights significant developments in Asian energy markets that are expected to drive this demand surge.

Key Drivers Behind Oil Demand Forecast

The company has identified two primary factors contributing to the projected increase in oil consumption:

Regional Market Dynamics

Reliance Industries' forecast underscores the pivotal role of Asian markets in global oil demand patterns. China's strategic stockpiling initiatives represent a significant component of the projected increase, reflecting the nation's efforts to enhance energy security. Meanwhile, India's growing oil demand signals continued economic expansion and increased energy consumption in one of the world's fastest-growing major economies.

Market Implications

The 0.9 million barrels per day increase projected for 2026 represents a notable uptick in global oil consumption expectations. This forecast from Reliance Industries, a major player in the refining sector, provides insight into anticipated market conditions and regional energy trends that could influence global oil markets in the coming years.

Reliance Industries has accelerated its new energy manufacturing capabilities, with the company on track to commission its fully integrated solar manufacturing giga factory and advance battery production facilities. According to its latest earnings release, the Mukesh Ambani-led conglomerate is making significant progress across its renewable energy value chain.

Solar Manufacturing Progress

The company is advancing its solar manufacturing giga factory with an initial annual capacity of 10 GWp, with plans to scale up to 20 GWp annually. The solar module manufacturing unit has already been commissioned, while solar cell manufacturing focused on heterojunction (HJT) technology was commissioned last quarter and is being ramped up to full capacity.

The HJT cells being manufactured are among the largest utility-scale cells globally and offer industry-leading efficiency, positioning the company to compete with global solar majors on both scale and technology.

Upstream Integration Development

Reliance Industries has commissioned a pilot line for ingots and wafers and will bring its giga factory online in phases throughout the year. The commissioning of polysilicon and solar glass facilities is also planned within the year, with construction progressing at a rapid pace.

Battery Manufacturing Expansion

In parallel with solar manufacturing, the company is building Battery Energy Storage System (BESS) and battery cell manufacturing giga factories with a combined planned capacity of 40 GWh annually. Construction is in full swing and commissioning will take place in phases during the year.

All critical production line equipment has already been received at the site, and the company plans to further scale battery manufacturing capacity to 100 GWh annually over time.

Renewable Energy Project Development

On the generation side, Reliance Industries is developing one of the world's largest renewable energy projects in Kutch, Gujarat. Land development, site infrastructure, engineering works and transmission infrastructure are all progressing simultaneously. Key contracts for the Kutch project have either been awarded or are in the process of being finalized, signaling a move from planning to execution across its new energy portfolio.

This aggressive build-out reflects Reliance's broader strategy to become a fully integrated clean energy player spanning manufacturing, storage and generation, as it positions itself for long-term growth in the global energy transition.