Petroleum Oils: Definition and Global Market Dynamics

Petroleum oils, commonly known as crude oil, are natural hydrocarbon-based liquids extracted from underground reservoirs. They serve as a crucial energy source and act as the primary raw material for the production of fuels and petrochemicals. In the market, petroleum oils are traded extensively through international transactions. Countries with surplus production export petroleum oils to meet the energy demands of importing nations.

The export and import of petroleum oils are influenced by factors such as production levels, refining capacities, transportation infrastructure, and global demand. This vibrant trade contributes to the availability and distribution of petroleum oils worldwide, ensuring a steady supply for various industries and meeting the energy needs of nations across the globe.

Petroleum Oils Trade PCI Ranking

Petroleum, bituminous, and distillates, with the exception of crude, are ranked 3827th overall by the Product Complexity Index (PCI).

 

Facilities Required to Enter Petroleum Oils Market

• Refinery Infrastructure:

Building or acquiring refineries to process crude oil into petroleum products.

• Storage Facilities:

Establishing storage tanks and facilities to store and distribute petroleum oils efficiently.

• Transportation and Logistics:

Developing a robust transportation network, including pipelines, tankers, trucks, or rail systems to transport petroleum oils to various destinations.

• Compliance with Regulations:

Adhering to legal and regulatory requirements related to environmental, safety, and quality standards in the petroleum industry.

• Market Research and Analysis:

Conducting comprehensive market research to understand demand, trends, and competition in the petroleum oil market.

• Supply Chain Management:

Establishing efficient supply chain management systems to ensure timely sourcing of crude oil, processing, distribution, and delivery of petroleum oils.

• Financial Resources:

Access to sufficient capital and financial resources to invest in infrastructure, technology, and market development.

• Industry Knowledge and Expertise:

Having a team with expertise and experience in the petroleum industry, including technical knowledge, trading skills, and market intelligence.

Petroleum Oils Trade Tariffs

Using the HS6 product classification, the average tariff for Oils petroleum, bituminous, distillates, except crude, in 2018 was 8.59%, ranking it as the 2668th lowest tariff.

Petroleum Oils Products

• Gasoline
• Diesel fuel
• Jet fuel (aviation turbine fuel)
• Heating oil
• Liquefied petroleum gas (LPG)
• Lubricants and greases
• Asphalt and bitumen
• Petrochemical feedstocks
• Solvents and thinners
• Naphtha and other light distillates
• Residual fuel oil
• Petroleum waxes
• Petroleum coke
• Petroleum jelly
• Petroleum-based additives and chemicals
• Industrial oils and fluids