Asia leads global energy demand growth, and China has continued to increase its oil reserves to maintain its dependence on imports, Bank of America said in a note dated September 12.
Last week, OPEC member Saudi Arabia and Russia said they would extend voluntary crude cuts until the end of the year. The Organization of the Petroleum Exporting Countries (OPEC) and a group of allies led by Russia is known collectively as OPEC+.
The cuts extended by Riyadh and Moscow will mean a substantial market deficit until the fourth quarter, the International Energy Agency (IEA) said on Wednesday.
Analysts at the investment bank also noted that Indian refiners have benefited from sanctions against Russia and Iran, accessing cheaper crude supplies and selling more expensively to Europe.