#Russian Export Blend Crude Oil

[mariacallous]

Russia’s Oil Revenue Drops Sharply as Price Caps Work, IEA Says

Russia’s oil-export revenue fell to lowest in more than a year in February as buyers of the nation’s barrels largely complied with price caps and sanctions, according to the International Energy Agency. 

The flow of money into the country from international oil sales fell to $11.6 billion last month, down more than 40% from a year earlier, according to the IEA. February crude oil and product exports averaged 7.5 million barrels a day, the lowest since September, the agency estimated.

“Although it has been relatively successful in sustaining volumes, Russia’s oil revenue has taken a hit,” the IEA said on Wednesday in its monthly report.

Western countries and their allies have taken a number of steps to reduce Russia’s oil proceeds, a key source of revenue for the national budget, in order to limit the Kremlin’s ability to finance its war in Ukraine. 

The coalition of nations have imposed ceilings on the price of Russian crude oil and refined products, which are designed to ensure the keep country’s energy flowing onto world markets while curbing revenue. The price restrictions came on top of European Union bans on imports of nearly all seaborne Russian crude and petroleum products, depriving the Kremlin of what has historically been its largest energy market. 

The bans forced Russia to find alternative markets in the Middle East and Latin America and expand supplies in Asia, yet the western caps gave the new clients the leverage to negotiate lower supply prices. The restrictions stipulate that buyers from third countries can access such western services as insurance and shipping only if they comply with the caps.

Price Caps

Initial market signals indicate that Russian crude oil and petroleum products on average were sold well below the price caps last month, according to the IEA. The agency’s calculations may be a factor in discussions between European nations on Wednesday, with Estonia, Lithuania and Poland arguing that the ceiling can be set much lower. 

The weighted average export price of Russian crude was at $52.48 a barrel, compared with a cap of $60, the IEA calculated using data from Argus Media Group and Kpler. The estimates are for the so-called free-on-board, or FOB, price, which excludes shipping and insurance costs.

Urals crude, Russia’s key export blend, sold for $45.27 in the Black Sea market, while such blends as ESPO, Sakhalin and Sokol, designed to be sent to Asia, traded well above the cap, according to the IEA. 

Russian diesel and gasoline, and lower-value products including naphtha and fuel oil, also traded on average below their caps of $100 and $45 a barrel, respectively, the data show. 

The IEA drew a different conclusion to the US Treasury, which estimated that only 25% of Russian oil sales occur below the cap. Still, both parties say the restrictions are doing their job by curbing Russia’s budget revenue while keeping export flows robust.

The IEA revised up its outlook for Russia’s average 2023 oil output to 10.4 million barrels a day, which is still down 740,000 barrels a day from the prior year. 

The country’s production “has held up surprisingly well following its invasion of Ukraine as measures have been put in place to facilitate the re-routing of crude oil exports to new markets,” according to the IEA. 

In retaliation for western sanctions, Russia pledged to cut its oil production by 500,000 barrels a day in March. So far, according to Bloomberg ship-tracking data, there’s no sign of export flows being affected. Russia’s refinery throughput in the first days of March dropped 2% on February levels, but the cuts may be partly an effect of seasonal maintenance.

[sequelscreen]

Reliance to Buy Russian Oil in Roubles: A Strategic Shift in Global Trade

In a significant move that underscores the evolving dynamics of global trade, India’s Reliance Industries has inked a one-year deal with Russia’s Rosneft to purchase oil in roubles. This shift aligns with Russian President Vladimir Putin’s directive for Moscow and its trading partners to bypass the Western financial system amid ongoing U.S. and European sanctions.

Key Details of the Deal

According to sources close to Reuters, Reliance, which operates the world’s largest refining complex, will buy at least 3 million barrels of oil monthly from Rosneft. The agreement, effective from the start of the Indian financial year on April 1, allows Reliance to secure discounted crude oil amidst anticipated supply cuts by the OPEC+ group.

OPEC+, consisting of the Organisation of the Petroleum Exporting Countries and allies including Russia, is set to discuss extending these cuts in a meeting on June 2. This move is crucial for Reliance as it navigates the fluctuating oil market.

India’s Growing Role in Russian Oil Imports

India, now the largest buyer of seaborne Russian crude, has significantly increased its imports since Western nations imposed sanctions on Moscow following Russia’s 2022 invasion of Ukraine. Payments for these imports have been made in various currencies, including rupees, dirhams, and Chinese yuan, reflecting India’s flexible approach to circumvent financial restrictions.

While state-owned Indian refiners have been active in the spot market for Russian oil due to challenges in finalizing term supplies, Reliance’s new deal with Rosneft ensures a stable supply at favorable rates. This deal includes the purchase of two cargoes of approximately one million barrels of Urals crude monthly, with the option to buy four additional cargoes at a $3 per barrel discount to the Middle East Dubai benchmark. Additionally, Reliance will buy one to two cargoes of low-sulphur ESPO Blend crude from Russia’s Pacific port of Kozmino at a $1 premium to Dubai quotes.

Strategic Implications and Payment Mechanism

Rosneft has emphasized its strategic partnership with India, highlighting ongoing collaborations in oil production, refining, and trading. The company maintains that its commercial valuation approaches are consistent across private and state-controlled entities.

To facilitate the rouble-based transactions, Reliance will utilize India’s HDFC Bank and Russia’s Gazprombank, though specific details of the payment mechanism remain undisclosed. Both HDFC Bank and Gazprombank declined to comment on the arrangement.

Reliance’s strategic pivot to rouble payments signifies a broader trend of diversifying trade mechanisms to mitigate the impact of Western sanctions. As global trade continues to adapt to geopolitical shifts, this deal marks a pivotal moment in the India-Russia energy partnership, potentially setting a precedent for future international trade agreements.

[head-post]

Oil and gas revenues replenish Russian treasury in February despite sanctions

Russia’s oil and gas revenues rose more than 80 per cent in February from a year earlier to more than $10 billion thanks to higher oil prices as its producers withstood Western sanctions, Bloomberg reports.

The Finance Ministry said on Tuesday that budget revenues from oil and gas taxes totalled 945.6 billion rubles ($10.4 billion) last month. Taxes on oil and petroleum products, which account for 84 per cent of all hydrocarbon revenues, more than doubled, according to Bloomberg calculations.

Oil taxes were based on an average price of $65 a barrel for Urals crude, Russia’s main export blend, up from $50 a year ago.

Russia’s oil and gas sectors are a key source of revenue for state coffers, which are under pressure from rising costs related to the military conflict in Ukraine and defence spending.

Read more HERE

[ledroitnews]

Ex-oil trader for Moscow Niels Troost hires his defence team with diplomatic passport in hand

The US Justice Department was reviewing evidence in mid-June that allegedly showed that embattled oil trader Niels Troost gained the title of Liberia's ambassador-at-large in Switzerland thanks to President George Weah.

Swiss authorities are probing a prominent Geneva-based oil trader’s legal arrangements to sidestep Russia sanctions, in a sign the country has begun actively policing its large commodity industry’s ties with Moscow.

Switzerland, the world’s commodity trading capital, has mirrored EU sanctions against Moscow, placing a cap of $60 (CHF53) a barrel on all trade in Russian crude. But under Swiss rules, overseas subsidiaries of a local company are largely exempt if they are “legally independent”.

The provision was notably used by Geneva-based Paramount Energy & Commodities SA, founded by veteran commodities trader Niels Troost, which transferred its Russian oil trading activity to a company with a near-identical name in the United Arab Emirates last year.

West needs Russian oil That company, Dubai-based Paramount Energy & Commodities DMCC, has continued to export a crude from eastern Russia called ESPO-blend. This has consistently traded above the $60-a-barrel cap introduced by the G7 in December, the Financial Times reported in March.

Following the FT report, Switzerland’s State Secretariat for Economic Affairs (Seco), the department responsible for sanctions enforcement, wrote to Paramount SA about its relationship with Paramount DMCC in the UAE, and Russian oil trading.

The sanctions were intended to allow Russian oil to continue to flow to markets outside Europe and the US, while limiting the revenue captured by the Kremlin. Washington has even encouraged western traders to keep moving Russian oil under the price cap to limit supply disruptions.

But one result has been a massive shift in oil trading activity out of former European centres like Geneva to jurisdictions such as Dubai, which has not enforced the west’s rules.

How the Ukraine war has impacted Swiss commodity trading

While some traders in the UAE have chosen to comply with the price cap in order to maintain access to western services, others appear to be trading oil above the cap by using non-European shipping and financial service providers to do it.

"Separate entities" In the April letter, Seco asked Paramount SA, among other questions, to confirm whether and at what price it had sold Russian oil since December and whether any individual holds shares — directly or indirectly — in both Paramount SA and Paramount DMCC. It also asked whether there had been any financial flows between the two companies, such as loans or dividend payments, since March 2022.

Paramount SA told the FT it had responded to Seco’s questions in full, telling the agency that the Swiss entity had ceased all transactions involving Russian oil “long before any price cap was in place”.

It said Paramount DMCC is a subsidiary of Paramount SA but stressed the companies are “separate legal entities” and “do not share directors”.

However, separate legal structures and directors do not guarantee that Swiss courts will view a subsidiary as independent and therefore beyond the purview of Swiss law, Seco told the FT in response to questions.

“Swiss authorities assess on a case-by-case basis to what extent acts committed abroad fall under Swiss jurisdiction and thus under the sanctions provisions of Switzerland,” Fabian Maienfisch, a spokesperson for the department said. “Possible points of contact with Swiss jurisdiction exist, for example, if payments or instructions are made from Switzerland,” he added.

The agency declined to respond to specific questions about Paramount. “Seco does not comment on specific cases nor on ongoing investigations,” it said.

Focus on company director The Paramount case raises clear questions about the level of control exerted over foreign subsidiaries by parent companies and the reach of Switzerland’s sanctions. It also provides an insight into some of the measures some European commodity traders have taken to protect themselves from potential sanctions breaches while continuing to trade Russian oil.

UAE corporate records, reviewed by the FT, show Paramount DMCC was registered in 2020 by a Dubai-based Swiss national François Edouard Mauron, who was the sole director and only shareholder on incorporation. Mauron transferred his shares to Paramount SA in April last year but remained a director.

Paramount SA told the FT in March that Troost, a Dutch citizen, had no role in establishing Paramount DMCC and no management role in the company.

However, a nominee agreement, signed by Troost in February 2022, described Mauron as a “nominee director” obliged to “act upon the instructions” of the shareholder, Paramount SA, in return for an annual nominee fee of CHF350,000 ($390,000). Troost is described in the February 2022 contract, seen by the FT, as the ultimate beneficial owner of Paramount SA.

“The Nominee shall report to and consult with the Shareholder on any matter concerning the company,” it said. “In case of doubt he shall request instructions in writing.”

Paramount SA said the nominee agreement was terminated in November, one month before the price cap was introduced, to ensure Paramount DMCC met the requirements of a legally independent subsidiary under Swiss law. That included giving “full authority” to the management of Paramount DMCC for the “development and execution of [its] international commodity trading activity”, according to minutes of a Paramount SA board meeting on November 2 2022, which the company shared with the FT.

Paramount SA added that “all payments and instructions relating to the relevant trading activities were conducted by DMCC completely independently from Paramount SA”.

Mauron told the FT he was no longer a director or manager at Paramount DMCC. He shared a letter dated May 18, 2023 identifying an Indian national as the company’s sole current director.

[imoim36news]

Limitations forestall Germany from importing oil from Kazakhstan Germany desires to purchase Kazakh oil to switch Russian oil. Photograph: AFP Multifaceted problemThe German Economic system Ministry confirmed on December 20 that it'll not purchase Russian oil in any respect from 2023. The brand new concept is to make use of the Russian pipeline system to import oil from Kazakhstan. There's even speak of a check cargo early subsequent yr. However getting Kazakhstan's crude oil by means of pipelines 1000's of kilometers to refineries in jap Germany will pose main challenges on many fronts. First, the pipelines by means of which the oil must circulation are Russian - the massive Druzhba community.Subsequently, any resolution to facilitate such shipments can solely be made by Russia. To this point, Russian oil pipeline operator Transneft PJSC has not acquired any requests from Kazakhstan for deliveries to Germany, in response to firm spokesman Igor Dyomin.A part of Kazakhstan's oil is pumped north to Almetyevsk in Russia and blended with oil from Russian fields into a typical export oil, which is...

[gulfseapetroleumbh]

Russian Export Blend Crude Oil

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[nawapon17]

Kazakhstan Renames Its Export Oil To Avoid Russia Sanctions Risk

[kayla1993-world]

From energy to food prices and even inflation, here's how war in Ukraine could impact Canada's economy

Although the economic consequences of the invasion of Ukrainian territory are far from the human toll, the invasion will have a direct and indirect impact on Canada.

The obvious example is the price of oil. Russia is an energy superpower, and the prospect of limiting its exports of energy products such as crude oil and natural gas is weighing heavily on markets.

Brent crude reached its highest level since 2014 on Thursday, topping $105 a barrel. West Texas Indeterminate, North America's dominant oil blend, was not far behind, changing hands for just under $98 a barrel at one point on Thursday.

In the absence of military intervention, the most powerful weapon NATO has at its disposal is threatening to limit Russian exports. However, because Europe is just as dependent on Russia for oil and gas as Russia is on the revenue from selling it, experts believe that there is little chance that this will happen.

Helima Croft wrote to clients early Thursday that the White House had gone to great lengths to convey that it would not target the energy sector and worsen an already tight supply situation."

"Though there have not been any physical disruptions to supply, Russia has expressed serious concerns that it may reduce exports of commodities due to U.S. sanctions."

About 10 percent of the world's oil supply is currently produced by Russia. If one energy giant turns off the taps, another could open them, but that's unlikely to happen with Canada because pipeline and export capacity for oil and natural gas are already stretched to their limit, said Eric Nuttall, a portfolio manager at Toronto-based investment firm Ninepoint.

Canada cannot increase oil exports to weaken the leverage, Nuttall told an interviewer. Although Canada's oilsands and the U.S. shale have sizeable energy resources, Nuttall says the decision to limit pipeline expansion has limited North America's ability to export as much oil as possible, to the point that both Canada and the U.S. still import oil from abroad.

According to the Canadian Association of Petroleum Producers, Canada imports about $550 million of crude oil from Russia each year, most of which is consumed in Eastern Canada.

Nuttall says the U.S. imports more. "They are essentially contributing $66 million a day to the Russian economy for them to launch cruise missiles into Ukraine when they have a safe and reliable supplier to the north," he said of the decision of the Biden administration to kill the Keystone XL pipeline once and for all.

In the short term, oil prices are headed higher due to uncertainty, but a long term military conflict in the region would slow down the economic growth of the world, said Barry Schwartz, chief investment officer at Baskin Financial.

"The oil industry should not excite anyone," he said in an interview. "Even though oil prices may rise as world events continue to be uncertain, if [the] invasion continues, if it worsens, the economies are going to slow dramatically and that's a bad scenario for the oil market."

The energy sector may be most directly impacted, but global food markets will also be affected. Ukraine is often called the "breadbasket of Europe," supplying crops like corn and wheat to the world, and Russia is not far behind.

Combined, the two countries produce about 25 percent of the world's wheat supply and that supply is now in question because of Russian aggression, says Croft at RBC.

Croft said that there is a substantial risk that Ukraine's ports may be inaccessible should active fighting commence as a result of recent deployments.

This part of the conflict will be felt directly by Canada, which exports wheat. "If Europe cannot get Ukrainian wheat, they will look for some somewhere else," said David Quist, executive director of the Western Canadian Wheat Growers Association.

"If Ukraine, which is one of the top exporters does not produce this year, we will have a global shortage. Prices will soar." They already have. It has risen by 15 percent in the past month alone because two of the world's biggest wheat crops may not be reliable in the short term, and possibly in the long term as well.

Richard Gray, an agricultural economist at the University of Saskatchewan, said a prolonged war could disrupt production for this spring or in the next few years.

Wheat prices may be rising but consumers in Canada and abroad should brace themselves for further increases in food prices. Grey says a loaf of bread might contain only about 40 or 50 cents worth of wheat, "so there won't be a big impact directly, but indirectly you might start seeing some increases in cereal prices.

Inflation has been rising to multi-decade highs recently due to higher food prices, which central banks were on track to tackle with interest rate increases imminently.

Although rate hikes are still expected, Royce Mendes, economist with Desjardins, says the sudden outbreak of war in Ukraine has changed the plans a little.

The Bank of Canada is set to announce its latest interest rate decision on Wednesday, and it is widely expected to raise its benchmark rate by at least one-quarter of a percentage point, to 0.5 percent.

The future is extremely uncertain, however. Providing that the normalization process for interest rates begins in the next few weeks, Mendes said in an interview, "we expect the process to continue at least gradually throughout the year."

"Even so, there are certainly more questions today about that process than there were just a few days ago." While expectations of how many hikes are coming and how fast are down today compared to just 24 hours ago, swap transactions suggest investors expect about half a dozen hikes in Canada and the U.S. by the end of the year.

There is no way even a military conflict in Europe will compel central bankers to deviate from their plans to rein in inflation, but the way forward is anything but certain — so Canadian consumers should brace themselves for uncertainty from this conflict a world away.

"The price of everyday goods in Canada can make a conflict that seems far away feel closer," Mendes said. "We should expect higher gas prices and possibly higher grocery store prices as a result of this conflict.

[mariacallous]

Sanctions-Proof Yuan to Putin’s Rescue After Oil Cap Hits Budget

The price cap on Russian crude oil exports is starving President Vladimir Putin’s budget of income, though it likely won’t force him to ratchet down spending for years thanks to a $45 billion buffer of yuan reserves.

Revenue plunged when the Group of Seven’s $60 per barrel limit came into effect last month. It combined with Putin’s spending increases since the invasion of Ukraine to contribute to a record deficit in December, with Russia’s flagship blend Urals trading just around $50, or nearly a third less than a year earlier.

Still, should it average the same price, Russia has enough to cover its shortfall for the next three years, according to Bloomberg Economics. Citigroup Inc. sees the stash depleted in 2 1/2 years with Urals at that level.

If Urals trades in the range of $40 to $50, revenue will fall as much as 2.5 trillion rubles ($36 billion) short of what the government budgeted, meaning monthly yuan sales would have to be more than triple the amount expected in January, according to Natalia Lavrova of BCS Financial Group.

The jolt to the budget turned the spotlight on a fiscal mechanism revived this month and involving sales of yuan from Russia’s wealth fund when revenues are below the target set by the government. 

The yuan is the only currency remaining in Russian reserves that can be used for interventions in the foreign-exchange market following the seizure of about $300 billion in holdings that included dollars and euros after the war began almost a year ago.

The calculus of how long the 310 billion yuan ($45 billion) in reserves might last provides a measure of Russia’s fiscal distress and allows its economic stamina to be gauged as the war drags on. And although the squeeze has become acute, Russia won’t burn through its stock of yuan assets this year unless Urals halves and averages $25, according to Bloomberg Economics.

Citigroup estimates it would only take an average price of $35 to deplete the available yuan resources already in 2023.

Other scenarios for Urals suggest Russia should tolerate pressure on the budget for much longer without reducing expenditure. An oil price above $60 would even allow the government to start adding to its yuan reserves.

Putin has said Russia is putting “no limitations” on military spending for the war in Ukraine, with budget expenditure surging by about a third in 2022 from what it planned before the invasion of Ukraine. Outlays are on track to remain around the same level in the coming year even as revenues come under pressure. 

Russia’s budget hasn’t been so reliant on high oil prices for about a decade. It needed Urals to average $104 to balance the books last year and the break-even will decline to $90 in 2023 only if the government avoids spending increases, Bloomberg Economics estimates.

Though Russia faces narrowing options in shoring up public finances, oil prices and the drawdown of the wealth fund won’t alone determine Putin’s choices. 

Recent proposals include higher dividends from state companies and a “one-time payment” by fertilizer and coal producers, alongside a plan to trim some non-defense spending. A windfall tax paid by Gazprom PJSC already helped sustain a budget surplus late last year.

For the full year 2022, the fiscal gap reached about 3.3 trillion rubles, or 2.3% of gross domestic product. This year’s deficit is forecast at 2%, based on an oil price of $70 per barrel.

Russia is also considering changes to the way it calculates taxes on oil to limit the plunge in budget revenue. The local bond market is another recourse available to the Finance Ministry, which staged record debt sales late last year to use up less of its wealth fund.

Other factors at play include a push by some European Union member states for a price cap even lower than the current $60. The US has so far argued in favor of keeping the threshold unchanged ahead of additional curbs on the trade in refined Russian fuel.

And while the price cap triggered record discounts on Russia’s oil-export blend — pushing it to trade at roughly half the price of international benchmark Brent — the effect may prove temporary, according to Dmitry Polevoy, a strategist at Locko-Invest in Moscow.

“The discount will remain, but will probably gradually decrease,” he said. “Logistical chains were already being redirected last year and they will change further this year amid the restrictions imposed.”

[priyanka16me]

Crude Oil market Growth to Witness an Outstanding Growth by 2024

Overview

The increase in demand and use for medium and heavy duty vehicles is paving way for growth in the crude oil market. And, while use of crude oil is problematic in these vehicles, till other fuels as effective as crude oil energy, it will remain the main source of energy for the transportation industry. Other areas where crude oil is used includes detergents, plastics, synthetic fibers and synthetic rubbers.

This wide usage will lead to global crude oil market growth charting a steady growth curve over the period of 2016 to 2024. And, the decent CAGR (Compound Annual Growth Rate) will lead to a good number of growth opportunities, adding to the market worth.

Some of the most significant factors that should be noted in the analysis of global crude oil market are outlined below:

World will see an increase in population by 2 billion – a rise to 9.7 billion from 7.7 billion – by 2050. This means not only will these extra people need houses, but public and personal transportation, home care and personal grooming products such as detergents, plastics, and cosmetics. This will lead to an increase in demand for crude oil, helping the global crude oil market on a high growth trajectory.

Mineral oil is a bio product of crude oil refining and is used massively in personal care products such as soaps, lotions, lip balms, and so on. As awareness regarding personal grooming grows, demand for mineral oil is expected to grow contributing positively to the growth of global crude oil market. It is important to note here that social media is playing a crucial role in developing this awareness towards better grooming. And, it is also setting a higher beauty standard, allowing for study growth in the cosmetics industry.

Global Crude Oil Market: Description

Crude oil is a naturally occurring hydrocarbon found in geological formations beneath the earth’s crust. Crude oil in both its unprocessed and refined states is broadly classified as petroleum. Petroleum satisfies a majority of the global energy demand. The demand for crude oil is directly proportional to the growth of global energy demand and a multitude of other macroeconomic factors ranging from disposable income to a rate of urbanization. Crude oil is further processed in refineries for making a large number of consumer products such as gasoline, kerosene, plastics and chemicals among others. The overall demand drivers for crude oil can be sub-divided into the individual demand growth of crude oil end use areas. One of the major uses of crude oil is for the manufacturing of gasoline. Countries such as the U.S. utilize nearly 45% of their entire oil requirement for making gasoline and fuelling their ever growing transportation sector. This trend is now being replicated most by the emerging economies of South America and Asia-Pacific.

To obtain all-inclusive information on forecast analysis of Global Market , request a PDF brochure here.

Global Crude Oil Market: Drivers and Restraints

Growing disposable income and reducing costs of automobiles have increased gasoline demand manifold in these regions. The growing medium and heavy duty vehicle market are also increasing the consumption of diesel in the aforementioned countries. Until a cost effective transition to cleaner fuels is achieved, the global transportation sector will continue to increase the demand for crude oil. Other transportation sector applications involve its use as a bunker fuel for the marine transport sector and as jet fuel for the aviation sector. With increasing demand of petrochemical products, the growing demand for crude oil is inevitable. Detergents, plastics, synthetic rubber and synthetic fibers are some of the major end use segments of crude oil. Growing demand in the fertilizer and pesticide market is also stimulating the demand for crude oil to a large extent. Crude oil can be measured in terms of sulfur content as sweet and sour. Sweet crude has a lower sulfur content which progressively increases in sour crude. Crude oil can also be segmented on the basis of API gravity as light and heavy. Crude oils with higher API gravity are lighter and vice versa. The crude oil market can be segmented on the basis of type as Brent Blend, Russian Export Blend and West Texas Intermediate (WTI) among others. Brent Blend crude oil is used for pricing nearly 60% of the global crude oil traded. These segments are used for determining the price of crude being traded on a daily basis.

Global Crude Oil Market: Geographical Dynamics

In terms of crude oil production the Middle East is the market leader with Saudi Arabia producing the most crude. The Europe and Eurasian region closely follows with the Russian Federation as one of the major contributors. In terms of crude consumption the Asia-Pacific is leading with China at the forefront, accounting for nearly 12% of the global crude consumption in 2013. Other major consumers in Asia-Pacific include South Korea, Japan and India. The U.S is the largest consumer of crude oil as a single country, accounting for nearly 20% of the global crude consumption in 2013. The Asia-Pacific and South & Central American regions have shown the highest growth in crude consumption from 2008 in 2012. Moderate increase in consumption levels has been observed in the Middle East and African region while Europe has shown a decreasing consumption trend. North Americas demand for crude since 2008 has remained nearly constant.

Some of the major crude oil producers in the world include Saudi Aramco, Gazprom, Exxon Mobil, Rosneft, Royal Dutch Shell, Chevron and Total among others.

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[boldlykeenblizzard]

oil prices: Saudis plan big oil output hike, beginning all-out price war

By Javier Blas and Anthony DiPaola

Saudi Arabia plans to increase oil output next month, going well above 10 million barrels a day, as the kingdom responds aggressively to the collapse of its Opec+ alliance with Russia.

The world’s largest oil exporter started a price war on Saturday by slashing the prices it sells crude into foreign markets by the most in at least 20 years, offering unprecedented discounts in Europe, the Far East and the U.S. to entice refiners to purchase Saudi crude at the expense of other suppliers.

At the same time, Saudi Arabia has privately told some market participants it could raise production much higher if needed, even going to a record of 12 million barrels a day, according to people familiar with the conversations, who asked not to be named to protect commercial relations. With demand being ravaged by the coronavirus outbreak, opening the taps like that would throw oil market into chaos.

In the first instance, Saudi production is likely to rise above 10 million barrels a day in April, from about 9.7 millions a day this month, according to people familiar with Saudi thinking.

“That’s the oil market equivalent of a declaration of war,” said a commodities hedge fund manager, asking not to be named due to the sensitivity of the situation.

Maximum Pain The shock-and-awe Saudi strategy could be an attempt to impose maximum pain in the quickest possible way to Russia and other producers, in an effort to bring them back to the negotiating table, and then quickly reverse the production surge and start cutting output if a deal is achieved.

Bloomberg

Brent crude, the global oil benchmark, closed down 9.4% on Friday, its biggest daily drop since the global financial crisis in 2008, settling at $45.27 a barrel.

The production increase and deep discounts mark a dramatic escalation by Prince Abdulaziz bin Salman, the Saudi oil minister, after his Russian counterpart Alexander Novak rejected an ultimatum on Friday in Vienna at the Opec+ meeting to join in a collective production cut. After the talks collapsed, Novak said countries were free to pump-at-will from the end of March.

“Saudi Arabia is now really going into a full price war,” said Iman Nasseri, managing director for the Middle East at oil consultant FGE.

Record Discounts With jet-fuel, gasoline and diesel consumption rapidly falling due to the economic impact of the coronavirus outbreak, the energy market now faces a simultaneous supply-and-demand shock.

After the failure in Vienna, Riyadh responded within hours by cutting its so-called official selling prices, offering record discounts for some of the crude it sells worldwide, according to a copy of the prices seen by Bloomberg News. Aramco has set the prices, but the official communication to clients is likely to come on Monday, a person familiar with the matter said.

The Saudi Energy ministry didn’t respond to a request for comment.

Last month, Saudi Arabia not only implemented the Opec+ output cuts, but “voluntarily” restrained its production even further in an effort to lift prices. When the Opec+ deal expires in three weeks, Riyadh will be able to pump as much as it wants.

Aramco tells refiners each month the price at which it will sell its crude, often adjusting the OSP by a few cents or as much a couple of dollars. But on Saturday, Aramco told customers it was slashing official prices by $6-$8 a barrel across all regions. The dramatic move will resonate beyond Saudi Arabia. The kingdom’s pricing decision affects about 14 million barrels a day of oil exports, as other producers in the Persian Gulf region follow its lead in setting prices for their own shipments.

Getting Nasty In the most significant move, Aramco widened the discount for its flagship Arab Light crude to refiners in north-west Europe by a hefty $8 a barrel, offering it at $10.25 a barrel under the Brent benchmark. In contrast, Urals, the Russian flagship crude blend, trades at a discount of about $2 a barrel under Brent. Traders said the Saudi move was a direct attack at the ability of Russian companies to sell crude in Europe.

“This is going to get nasty,” said Doug King, a hedge fund investor who co-founded the Merchant Commodity Fund. “Opec+ is going to pump more, and the world is facing a demand shock. $30 oil is possible.”

Oil traders are looking to historical charts for an indication of how low prices could go. One potential target is $27.10 a barrel, reached in 2016 during the last price war. But some believe the market could go even lower.

“We’re likely to see the lowest oil prices of the last 20 years in the next quarter,” said Roger Diwan, an oil analyst at consultant IHS Markit Ltd. and a veteran Opec watcher, implying that the price could fall below $20 a barrel.

Brent crude, the global benchmark, fell to a low of $9.55 a barrel in December 1998, during one of the rare price wars that Saudi Arabia has launched over the last 40 years.

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Industrial Petroleum Products in Bahrain

Industrial petroleum products are basically the materials that are derived from petroleum also known as crude oil. The products are obtained when petroleum is processed in oil refineries. Petroleum products are different from petrochemicals. Petrochemicals are a collection of well-defined pure chemical compounds whereas petroleum products are complex mixtures. The majority of petroleum is converted into petroleum products that include a number of classes of fuels.

Due to the crude oil’s composition and also depending on the market demands, refineries have the ability to produce different shares of industrial petroleum products. Energy carriers are what the largest product of oils are used as. These are various grades of gasoline and fuel oil. These fuels can be blended to give gasoline, diesel fuel, jet fuel, heating oil, and also heavier fuel oils. The less volatile fractions can also be used to produce various products such as tar, asphalt, paraffin wax, lubricants and other heavy oils. Not just this but refineries also produce different chemicals. Some of these chemicals are used in chemical processes to produce plastics and various other useful materials. Elemental sulfur is also often produced as industrial petroleum product because petroleum contains a few percent sulfu-containing molecules. Carbon in the form of petroleum coke as well as hydrogen might also be produced as industrial petroleum products. The use of produced hydrogen is usually as an intermediate product for other oil refinery processes such as hydrocracking and also hydrodesulfurization.

In The Kingdom of Bahrain, Gulf Sea Petroleum is the most diversified petroleum marketing company. We deal with petroleum products for both industrial as well as commercial uses. The company operates in both upstream and downstream of the energy industry. We supply Fuel Oil (CST-180 / CST-380), D6 Virgin Fuel Oil, Automotive Gas Oil, Aviation Kerosine (JET A-1, TS-1), Russian Origin Gas D2 Oil, Russia Origin 54 Jet Fuel Oil, Russian Origin Mazut M100 Oil, Russian Export Blend Crude Oil, Ultra-Low Sulphur Diesel (50 PPM / 500 PPM), Russian Liquefied Natural Gas, Russian Liquefied Petroleum Gas, European Diesel (EN 590), Petroleum Coke, Bonny Light Crude Oil, Gasoline and Base Oil. For more details visit us at http://gulfseapetroleum.com/.

[harshalblogs-blog]

Brakeoil Aftermarket Estimated to Reach US$ 16,989 Mn by 2025

Brake oil Aftermarket for Off-highway vehicles – Snapshot

Brakeoil is a type of hydraulic fluid used in hydraulic brake and hydraulic clutch applications in automobiles, motorcycles, light trucks, and off-road vehicles. Brakeoil is renewed or changed every one to two years in off-road vehicles in order to improve the safety and durability of vehicles. Thus, the brakeoil aftermarket has been expanding across the globe. Newly developed state-of-the-art brakeoil offers better performance reliability with efficient results. Glycol fluids are the most commonly used in most motor vehicles in various grades. They are named by the Department of Transport (DOT) coding and are classified into DOT 3, DOT 4, DOT 5, and DOT 5.1.

Rise in investments in mining and construction industries across the globe

Rise in mining and construction activities is driving the off-highway brakeoil aftermarket. The frequency of oil change and other maintenance is expected to increase with the growth in age of off-highway vehicles such as heavy trucks and mining vehicles. Vehicles require brakeoil change to ensure safety of the passengers and maintenance of the vehicle for long life and high efficiency.

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Volatility in crude oil prices coupled with increase in demand for electric vehicles is likely to hamper the demand for brake oil in the near future

Brake oil level may also be low because of a leak. This could result in a loss of hydraulic pressure. Consequently, this may lead to significant loss of braking ability. Modern vehicles have split hydraulic circuits to ensure against total hydraulic failure. Brakeoil has a limited life, not only because of water absorption but due to the depletion of corrosion inhibitors and stabilizers over time. Wear particles and rubber fragments also build up gradually. Rise in demand for e-vehicles is one of the restraints of the brakeoil aftermarket in Europe. The usage of electric vehicles for mining, agriculture, and construction is increasing at a rapid pace.

Year-on-year increase in demand for automotive, especially off-highway vehicles, provides lucrative opportunities for the off-highway brakeoil aftermarket

Brake oil plays an important role in the efficient operation of the braking system and in turn the safety of the vehicle. The U.S. continues to be the leading country in terms of consumption of brake oil due to the implementation of stringent government regulations on the servicing of vehicles in order to maintain safety and lower harmful emissions. India follows China in long-term growth of the brakeoil aftermarket due to its rapidly growing economy. Southeast Asia is also a key region of the off-highway brakeoil aftermarket due to the expansion in the automobile industry in the region. Key factors that promote the brake oil aftermarket are increasing due to stringent emission & fuel consumption norms imposed by several governments and more exacting OEM specifications. Opportunities in the development of next generation brakeoil with better efficiency and advanced technology are under process. Companies such as Bosch and Exxon are engaged in developing brake oil with advanced technologies.

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Developments & innovations in terms of product and technology in brakeoil aftermarket services

In January 2018, Lukoil signed a contract with Elabuga car plant (ELAZ), Turkey, wherein the former will supply first fill lubricants for ELAZ-BL backhoe loaders. The company will also supply a wide spectrum of hydraulic, motor, transmission, and universal tractor oils. In October 2017, Lukoil entered into a strategic partnership with the Russian Export Center. The partnership aims to provide full scale support to Lukoil in promoting its high-end lubricants and oil manufacturing technology in foreign markets. This is expected to expand Lukoil’s business across the globe. In 2016, LUKOIL launched the construction of a lubricants plant in Kazakhstan the capacity of 100 thousand tons per year to be engaged in blended lubricant production. The plant is scheduled for commissioning in 2018. This is estimated to expand the company’s business in Europe. In 2017, Phillips 66 launched T5X® off-road mobile high-performance hydraulic fluid, which is likely to be beneficial in the hydraulic systems of Caterpillar and other off-highway mobile equipment. Recently, Royal Dutch Shell launched its Rimula’s adaptive technology, which provides outstanding wear protection with reduced viscosity for improved fuel efficiency for off-road heavy vehicles.

Asia Pacific to remain dominant region in terms of demand for brakeoil aftermarket services

In terms of revenue and volume, Asia Pacific held large share of more than 30% of the global off-highway brakeoil aftermarket in 2016. Countries such as China, India, Vietnam, and Indonesia are experiencing major economic and infrastructure development. This can be ascribed to the rapid industrialization in the region. India, China, and Australia are dominant countries in the mining of minerals, metals, non-metals, and ores. Globally, Australia is ranked second in terms of year-on-year mining of gold. Furthermore, these countries employ majority of off-highway mining vehicles. This is anticipated to boost the market in the near future.

[trendingnewz-blog]

Crude Oil Market Is Anticipated To Generate Significant Revenues By 2024

Crude oil is a naturally occurring hydrocarbon found in geological formations beneath the earth’s crust. Crude oil in both its unprocessed and refined states is broadly classified as petroleum. Petroleum satisfies a majority of the global energy demand. The demand for crude oil is directly proportional to the growth of global energy demand and a multitude of other macroeconomic factors ranging from disposable income to a rate of urbanization. Crude oil is further processed in refineries for making a large number of consumer products such as gasoline, kerosene, plastics and chemicals among others. The overall demand drivers for crude oil can be sub-divided into the individual demand growth of crude oil end use areas. One of the major uses of crude oil is for the manufacturing of gasoline. Countries such as the U.S. utilize nearly 45% of their entire oil requirement for making gasoline and fuelling their ever growing transportation sector. This trend is now being replicated most by the emerging economies of South America and Asia-Pacific.

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Global Crude Oil Market: Drivers and Restraints

Growing disposable income and reducing costs of automobiles have increased gasoline demand manifold in these regions. The growing medium and heavy duty vehicle market are also increasing the consumption of diesel in the aforementioned countries. Until a cost effective transition to cleaner fuels is achieved, the global transportation sector will continue to increase the demand for crude oil. Other transportation sector applications involve its use as a bunker fuel for the marine transport sector and as jet fuel for the aviation sector. With increasing demand of petrochemical products, the growing demand for crude oil is inevitable. Detergents, plastics, synthetic rubber and synthetic fibers are some of the major end use segments of crude oil.

Growing demand in the fertilizer and pesticide market is also stimulating the demand for crude oil to a large extent. Crude oil can be measured in terms of sulfur content as sweet and sour. Sweet crude has a lower sulfur content which progressively increases in sour crude. Crude oil can also be segmented on the basis of API gravity as light and heavy. Crude oils with higher API gravity are lighter and vice versa. The crude oil market can be segmented on the basis of type as Brent Blend, Russian Export Blend and West Texas Intermediate (WTI) among others. Brent Blend crude oil is used for pricing nearly 60% of the global crude oil traded. These segments are used for determining the price of crude being traded on a daily basis.

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Some of the major crude oil producers in the world include Saudi Aramco, Gazprom, Exxon Mobil, Rosneft, Royal Dutch Shell, Chevron and Total among others.

The report offers a comprehensive evaluation of the market. It does so via in-depth qualitative insights, historical data, and verifiable projections about market size. The projections featured in the report have been derived using proven research methodologies and assumptions. By doing so, the research report serves as a repository of analysis and information for every facet of the market, including but not limited to: Regional markets, technology, types, and applications.

[thehappyavenuebouquet-blog]

How does crude oil affect gas prices?

When the price of gas rises, it impacts how people travel, how goods are shipped and how people formulate their budgets. When home heating prices climb, people have to decide whether or not they can afford to turn up their thermostats. When various goods have become more expensive because their components also cost more, people have to make difficult choices on what to buy.

The reason for the above price fluctuations is oil. The price of oil affects individual spending choices. It forces companies to make difficult decisions. It can even change relations between countries. Oil is perhaps the world's most important natural resource. But what makes it so important? Why is it constantly in the headlines? And why is the price of oil constantly in flux? In this article, we'll analyze oil and how it makes its way into your daily life.

The Origin of Crude Oil

No one knows exactly how oil was created. But there are two theories that explain how the substance may have originated.

The first theory suggests that oil is a fossil fuel, meaning it is composed of dead plants and animals that lived hundreds of millions of years ago. After decomposing over the eons, the chemical compounds of the remains broke down and formed what we now call oil.

Twentieth-century Russian scientists proposed another, "abiotic" theory, which states that oil comes from near the earth's core, where it eventually flows, much like lava, into puddles underneath the earth's crust.

Finding Crude Oil

Oil can be found on all of the earth's continents. Some places, like Australia, have very little, but countries that have large reservoirs of oil are key players on the world stage. After all, they are sitting on top of pools of one of the most important global resources.

Oil is traditionally measured in barrels, and 1 barrel = 42 gallons. Experts say that there are about 1.3 trillion barrels of oil. If you've ever read anything about the Middle East, then you certainly know that it is the center of the world's oil supply. The region sits on top of a liquid gold mine; experts estimate the region holds more than 700 billion barrels of oil in its various fields and reserves, or roughly 56% of all the world's resources.

he nation that has the most oil — in not just the Middle East but the entire world — is Saudi Arabia. The kingdom, also the spiritual home of Islam, reportedly has more than 250 billion barrels. The other Middle Eastern nations, all with sizable quantities, have about one-half of what Saudi Arabia has in reserves. These nations include Iraq, Iran, Kuwait and the United Arab Emirates. In total, the region's vast supplies of oil make them an integral part of the world economy.

Canada, which has close to 200 billion barrels within its borders, has the second-largest amount of proven oil reserves in the world. However, much of these reserves are located in Alberta's "sand pits," a terrain that makes the oil harder to extract from the earth than it is in other countries. However, technological innovations are expected to make extracting oil located in this kind of terrain easier. (Learn more about the relationship between Canada and oil in "Commodity Prices And Currency Movements.")

Other nations with large reservoirs of oil include:

Libya

Venezuela

Nigeria

Mexico

Indonesia

the EU nations

Brazil

China

Refining Crude Oil

Before oil can be used, it has to be broken down in a process known as "refining." After being purchased, oil is shipped to various refineries around the world. In America, many (but certainly not all) of the oil refineries are located in the Gulf Coast region. This is a reason why oil costs tend to fluctuate during storm season. A large hurricane, for example, puts oil supplied at the refineries at risk of destruction. (Oil companies have been at the center of some environmental problems in recent decades. Read more about oil producers and the environment in "The Green Marketing Machine.")

Refining oil works in an easy way. Crude oil is put into a boiler and turned into a vapor. From there, the vapor moves into a distillation chamber, where it is turned back into a liquid. Different types of oil are formed depending upon the temperature they were distilled at. Gasoline, for example, is distilled at coolertemperatures than residual oils that are used to make products, such as asphalt and tar.

After the many substances made from oil are processed, they arrive in various products to do a little bit of everything, from heating our homes to powering our cars.

Oil Uses

It makes sense that the world's biggest economies would use the most oil. America, which has the world's biggest gross domestic product (GDP), also consumes more oil than any other nation. The U.S. uses almost 25% of the estimated 80 million barrels of oil produced around the world every day.

The phrase "America's dependence on foreign oil" is mentioned often in the media, particularly in reference to American imports from the Middle East. However, this statement doesn't accurately tell who supplies the U.S. About 34% of all of the oil America uses comes from reserves found in the 50 states. The country that exports the most oil to America is Canada, with Saudi Arabia second. The European Union (EU) also uses a large percentage of the world's reserves, going through approximately 14.5 million barrels daily. Other nations who have large, established economies – Japan, Canada and South Korea rank high on the list of the world's biggest oil consumers.

One country that may play the biggest role in world oil consumption is China. China currently ranks as the third-biggest oil consumer on the planet. But with its dynamic and fast-growing economy, China's usage of oil is forecasted to grow exponentially. Analysts have said that China's demand for oil grows by approximately 7.5% a year. This increased demand – along with the growing energy needs of countries like India and Brazil – has been a contributing factor in the rise of oil prices over the past few years.

These countries act as the demand for the world's oil supplies. However, the way oil is priced does not reflect that of the free market. (To learn about the most common way goods' prices are determined, see our Economics Basics tutorial.)

OPEC's Impact on Oil

One body has great influence over the worldwide price of oil. The Organization of Petroleum Exporting Countries, more commonly known as OPEC, is a cartel made up of 12 of the world's biggest oil-producing nations, including all of the major Middle Eastern states, Venezuela and Nigeria. According to OPEC, this cartel controls 78% of the world's known oil reserves. The major oil producers not in OPEC include Russia, Canada and the U.S.

Since the OPEC nations produce so much of the world's oil supply, they can manipulate the price per barrel depending upon how many barrels per day the group will sell on the world oil market. If the group wants the price to rise in order to make more money, they can reduce the amount of oil contributed to the world market. And if they want the price to dip — high energy prices drive down demand from OPEC's consumers – they can release more barrels to the market.

Types of Oil and Pricing

One might assume there is only one type of oil, but that's far from the truth: There are 161 different types, each with its own consistency, chemical breakdown and potential for use.

Even though there are so many forms of oil, we typically only cite only one price for a barrel. This is because oil traders have selected the most widely used types of oil to determine the price per barrel. For instance, one common type of oil found and used in America is called West Texas Intermediate (WTI). West Texas Intermediate's popularity is due to it being a "light and sweet" oil, which is easy to break down in the refining process. Since this oil is purchased quite frequently, it is used as an industry standard.

Other price benchmarks are used globally. Most European nations use the Brent Blend, found in the North Sea, as their benchmark price. Another heavily used benchmark is the OPEC basket, which combines the prices of several other popular types of oil from around the world into a "price basket."

And while oil can be purchased directly (in what is called the spot market), the commonly cited price per barrel does not reflect what a customer pays. Instead, the price bandied about has been sold on the futures market. In America, WTI crude-oil futures are traded through the New York Mercantile Exchange (NYMEX). European oil futures are sold through Intercontinental Exchange's London branch. Globex is another popular commodities market where oil futures change hands. (Get an education on how futures work at Futures Fundamentals.)

Understanding the Oil and Gas Price Correlation

There is a limited positive correlation between crude oil and natural gas prices. It seems logical there would be a positive correlation between the commodities, especially since natural gas is often a byproduct of drilling for crude oil. While at times crude oil and natural gas have had a positive correlation, the markets for each commodity are substantially different and subject to differing fundamental forces. Statistical analysis shows there are periods of positive correlation, but generally the two have limited correlation.

Correlation Coefficient of

Natural Gas and Crude Oil

The correlation coefficient is a statistical measure of the extent to which the price of natural gas and crude oil move together. It is also a measure of the degree to which the prices move together. The correlation coefficient is measured on a scale of -1 to +1. A measure of +1 indicates a perfect positive correlation between two asset prices, meaning the prices of the assets move together in the same direction to the same degree proportionally all of the time.

A measure of -1 indicates a perfect negative correlation. This means the asset prices move in the opposite direction of each other in the same proportion all of the time. If the correlation coefficient is zero, it means there is no relationship between the two prices. The correlation coefficient is often used in the construction of portfolios by providing a statistical measure of the diversification of the assets in the portfolio.

Oil and Gas Correlation Data Sources

The Energy Information Administration (EIA) provides historical data for the daily correlation between commodities on a quarterly basis. This information indicates the correlation between crude oil and natural gas is falling. For example, in 2004, the average quarterly correlation between the two prices was around 0.45. This is a moderate positive correlation.

In 2010, this correlation average fell to -0.006, showing there was very little relationship between the prices. In 2014, the average correlation was 0.075. This also indicates very little correlation. However, the first two quarters of 2015 show an average correlation of 0.195, which is slightly positive. Prices for both commodities generally fell during this period.

The highest correlation was in the third quarter of 2005 with a measure of 0.699. The lowest correlation was in the third quarter of 2010 with a negative correlation of -0.21. In general, the correlation is falling. The EIA notes this is due to the increase in shale oil natural gas production.

Impact of Natural Gas Production on Oil Prices

Natural gas oil production has increased dramatically with the discovery of new shale drilling technologies. Between 2007 and 2012, natural gas production from shale drilling rose by a whopping 417% and overall production increased by around 20% during the same period. Natural gas prices have shown greater volatility historically than crude oil prices, while low natural gas prices have led sectors such as the transportation industry to use more natural gas over crude oil. Natural gas usage in the transportation sector grew by 22% from 2007 to 2012.

Crude Oil Production Impact on Prices

Shale drilling technologies have also led to expanded crude oil production. Daily crude oil production increased from 5.35 million barrels per day in 2009 to 6.5 million barrels in 2012. Production in 2014 grew even more to 8.7 million barrels a day. Estimates for 2015 indicate this number will likely grow even larger.

This increased production is one of the reasons for the dramatic drop in oil prices from 2014 to 2015. Oil was trading at over $105 a barrel in June of 2014 and by late January 2015, the price cratered to around $45 a barrel. Supply was outstripping demand and increased production combined with lower demand has hurt prices. Further, economic uncertainty across the globe has called into question the strength for future demand.

The Bottom Line

Oil is one of the world's most important commodities, and as a result, the nations that control the bulk of the world's supply have (and exercise) a great deal of power over its availability. The supply of oil in the world market has an impact on its price, and the fluctuations are passed on to consumers, especially in nations that use a lot of oil, such as the U.S. Oil prices are also determined by quality and ease of refining. Investors have the option of investing in oil futures, which themselves have an influence on the price of oil that is reported. The oil market is quite complex, and a better understanding of how oil gets to you from the ground in all its forms will help you to understand and deal with fluctuating prices.

[yourpooja123-blog]

Crude Oil Market Report 2018 And Future Opportunity Assessment 2025

Crude oil is a naturally occurring hydrocarbon found in geological formations beneath the earth’s crust. Crude oil in both its unprocessed and refined states is broadly classified as petroleum. Petroleum satisfies a majority of the global energy demand. The demand for crude oil is directly proportional to the growth of global energy demand and a multitude of other macroeconomic factors ranging from disposable income to a rate of urbanization. Crude oilis further processed in refineries for making a large number of consumer products such as gasoline, kerosene, plastics and chemicals among others.

The overall demand drivers for crude oil can be sub-divided into the individual demand growth of crude oil end use areas. One of the major uses of crude oil is for the manufacturing of gasoline. Countries such as the U.S. utilize nearly 45% of their entire oil requirement for making gasoline and fuelling their ever growing transportation sector. This trend is now being replicated most by the emerging economies of South America and Asia-Pacific.

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Growing disposable income and reducing costs of automobiles have increased gasoline demand manifold in these regions. The growing medium and heavy duty vehicle market are also increasing the consumption of diesel in the aforementioned countries. Until a cost effective transition to cleaner fuels is achieved, the global transportation sector will continue to increase the demand for crude oil. Other transportation sector applications involve its use as a bunker fuel for the marine transport sector and as jet fuel for the aviation sector. With increasing demand of petrochemical products, the growing demand for crude oil is inevitable. Detergents, plastics, synthetic rubber and synthetic fibers are some of the major end use segments of crude oil.

Growing demand in the fertilizer and pesticide market is also stimulating the demand for crude oil to a large extent. Crude oil can be measured in terms of sulfur content as sweet and sour. Sweet crude has a lower sulfur content which progressively increases in sour crude. Crude oil can also be segmented on the basis of API gravity as light and heavy. Crude oils with higher API gravity are lighter and vice versa. The crude oil market can be segmented on the basis of type as Brent Blend, Russian Export Blend and West Texas Intermediate (WTI) among others. Brent Blend crude oil is used for pricing nearly 60% of the global crude oil traded. These segments are used for determining the price of crude being traded on a daily basis.

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In terms of crude oil production the Middle East is the market leader with Saudi Arabia producing the most crude. The Europe and Eurasian region closely follows with the Russian Federation as one of the major contributors. In terms of crude consumption the Asia-Pacific is leading with China at the forefront, accounting for nearly 12% of the global crude consumption in 2013. Other major consumers in Asia-Pacific include South Korea, Japan and India. The U.S is the largest consumer of crude oil as a single country, accounting for nearly 20% of the global crude consumption in 2013. The Asia-Pacific and South & Central American regions have shown the highest growth in crude consumption from 2008 in 2012. Moderate increase in consumption levels has been observed in the Middle East and African region while Europe has shown a decreasing consumption trend. North Americas demand for crude since 2008 has remained nearly constant.Some of the major crude oil producers in the world include Saudi Aramco, Gazprom, Exxon Mobil, Rosneft, Royal Dutch Shell, Chevron and Total among others.

The report offers a comprehensive evaluation of the market. It does so via in-depth qualitative insights, historical data, and verifiable projections about market size. The projections featured in the report have been derived using proven research methodologies and assumptions. By doing so, the research report serves as a repository of analysis and information for every facet of the market, including but not limited to: Regional markets, technology, types, and applications.

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Transparency Market Research (TMR) is a global market intelligence company providing business information reports and services. The company’s exclusive blend of quantitative forecasting and trend analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants use proprietary data sources and various tools and techniques to gather and analyze information.

TMR’s data repository is continuously updated and revised by a team of research experts so that it always reflects the latest trends and information. With extensive research and analysis capabilities, Transparency Market Research employs rigorous primary and secondary research techniques to develop distinctive data sets and research material for business reports.

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