Global Crude Oil Market: Country Overview; Value Chain Analysis; Production Process; Trade Analysis; Price Analysis; Market Dynamics: Drivers & Constraints, Industry Events, Innovations & Trends, SWOT Analysis, Porter’s Five Forces; Industry Best Practices: Sourcing Strategy, Procurement Model, Contract Structure, Negotiation Levers, Pricing Model; Key Supplier Analysis, 2024-2032

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The global crude oil market reached a volume of about 96.5 mb/d in 2021. The industry is projected to grow at a CAGR of around 1.5% in the forecast period of 2022-2027 to reach a volume of 105.6 mb/d by 2027.

The crude oil industry report comprehensively analyses the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. Due to the increase in exploration activities around subsea oil and gas mining sites the market has seen remarkable demand. In addition, emerging economies like China and India are evolving as leaders in the utilisation of crude oil. The key demand indicator in the industry report is the highest category spender by region — the Middle East and Africa.

Industry Definition and Segmentation

An unprocessed petroleum product that transpires naturally is called crude oil. Crude oil is further processed and split effortlessly based on boiling point and is converted into a vast number of consumer commodities such as petrol (or gasoline) and kerosene to asphalt and chemical substances utilised to manufacture plastics and pharmaceuticals. Furthermore, it is refined and separated to create components that are additionally transformed into simpler segments to be used as fuels, lubricants, and even as transitional raw material in the petrochemical industries. The global crude oil industry report comprises segments based on derivatives (paraffin, naphthene, aromatic, and asphaltic), composition (hydrocarbon compounds, non-hydrocarbon compounds, organometallic compounds, and inorganic salts), type (light distillates, light oils, medium oils, and heavy fuel oil), end-use (light commercial vehicles, passenger vehicles, mining, agriculture, and residential (in LPG)) and regions (Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa).

The Middle East and Africa Regions are Driving the Growth of the Industry

The Middle East region is leading the crude oil market in terms of its output with Saudi Arabia manufacturing the maximum volume of crude oil. The major factor propelling the market in the region is the elevated domestic consumption and the demand for imports from regions such as the Asia Pacific and Europe. Likewise, the growth in commercial activities is bolstering the market in Africa, alongside the detection of new shale oil assets in the region.

The rise in disposable income and the declining price of automobiles have raised the demand for gasoline at a higher level in the Middle East and Africa region. The average and heavy-duty vehicle markets are witnessing growth which is further leading to the increase in the utilisation of diesel in the aforesaid regions. Crude oil consumed as bunker fuel for the marine transport industry and as jet fuel in the aviation sector is some of the additional uses in the other transportation industries that are resulting in adding to its global demand. Moreover, with the growing demand for petrochemical products the rise in the demand for crude oil worldwide is predictable. Besides, Detergents, plastics, synthetic rubber, and synthetic fibres are a few of the primary end-use sectors of crude oil. In addition, increasing demand for crude in the fertiliser and pesticide market is also accelerating the market to a great extent.

Nevertheless, because of the growth in the switch towards other substitutes of energy sources by various regions including the European Union is negatively impacting the growth of the market. Also, global geopolitical situations are highly manipulating the supply of oil in the market. Hence, leading producers of crude oil like the Middle East and Africa are continually striving to balance supply levels, limiting the development of the market at a certain level.

Best Procurement Practices

The global crude oil industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by crude oil producing and utilising regions across the globe, such as contract terms, engagement models, and buyer and supplier negotiation levers, among others.

Category Management Studies

Crude oil is a fossil fuel that is formed from a combination of hydrocarbons that is formed from the corpses of dead animals and plants (diatoms) such as algae and zooplankton that existed millions of years ago in an aquatic atmosphere before dinosaurs lived on this earth. The dead bodies of these animals and plants were covered by layers of sand, silt, and rock for millions of years. The heat from the sun and the pressure from the layers of the earth convert the animals and plants ruins into what is known as crude oil or petroleum. Additionally, both crude oil and other hydrocarbons are found in liquid or gaseous form in underground reservoirs, existing in small spaces between sedimentary rocks, and close to the surface of the earth in tar sands. It is transported to a refinery after crude oil is separated from the ground, where several parts of the crude oil are split into useable petroleum products. These petroleum goods consist of gasoline, distillates such as diesel fuel and heating oil, jet fuel, petrochemical feedstocks, waxes, lubricating oils, and asphalt.

The Growing Population and the Subsequent Demand in the End-Use Sectors is Further Driving the Procurement of Crude Oil

It is predicted that the global population will rise by 2 billion (from 7.7 billion to 9.7 billion) by 2050. This additional population will not only need accommodation but would also require public and personal transportation, home, and personal care products such as detergents, plastics, and cosmetics. This means that it would result in an increase in the demand for crude oil, supporting the international crude oil market on a major growth curve. Moreover, mineral oil - a bio-product of the crude oil refining process – is consumed extensively in personal care products like soaps, options, and lip balms, among others. Demand for mineral oil is projected to rise owing to the rising awareness about personal grooming has further promoted positively to the development of the global crude oil market.

The major zones in the industry are North America, Europe, Latin America, the Asia Pacific, and the Middle East, and Africa.

Key Industry Players Mentioned in the Crude Oil Industry Report

• Shell plc 
• Exxon Mobil Corporation 
• PJSC Lukoil Oil 
• Equinor ASA 
• Chevron Corporation

Market Landscape

Some of the leading end-use segments such as detergents, plastics, synthetic rubber, and synthetic fibres use crude oil in large volumes. In addition, escalating demand in the fertiliser and pesticide market is also encouraging the demand for crude oil to a great extent. Furthermore, crude oil can be quantified by the sulphur content in it as sweet and sour with sweet crude containing a low level of sulphur content. Crude oil can also be bifurcated as light and heavy based on its API gravity. Crude oils with greater API gravity are lighter and the other way round for higher API gravity. Brent Blend crude oil, one of the types of crude oil, is used to determine the pricing of about 60% of the international crude oil merchandise.

Key Initiatives by Companies

• In June 2020, there was a collaborative agreement between BP and Dragon Oil, Dubai’s Emirates National Oil Company (ENOC)’s completely owned division. This agreement was signed by BP to sell its interest in the Gulf of Suez Petroleum Company (GUPCO) in Egypt.
• In 2018, Gazprom found a new major oil field, Triton, in the ledge area of the Sea of Okhotsk and was incorporated into the State balance sheet.