Global Fuel Oil Market: Country Overview; Value Chain Analysis; Production Process; Cost Structure; Indicator 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

Fuel Oil Industry Report by Regional Category Spend, Price Analysis, Key Demand, Price Indicators, and Best Buying Practices

The global fuel oil market reached a volume of about 4.2 MBPD in 2021. The industry is projected to grow at a CAGR of around 7.15% in the forecast period of 2022-2027 to reach a volume of 6.35 MBPD by 2027.

The fuel oil industry report comprehensively analyses the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The demand for fuel oil across several industries like petroleum refineries, construction materials, metallurgy, and the electricity industry is rising at a higher speed globally which is projected to enhance the fuel oil market. The Asia Pacific is the highest category spender by region that is driving the demand for the fuel oil industry.

Industry Definition and Segmentation

Fuel oil also called by other names like heavy oil, marine fuel, or furnace oil is a small part of the oil produced by distillation, both as a distillate or as a residue. Furthermore, fuel oil implies any liquid fuel which is normally burned in the boiler or furnace for heat creation. It consists of long chains of hydrocarbons, alkanes, cycloalkanes, and aromatics. Fuel oil is the strongest and the severest commercial fuel that is acquired as the derivative of crude oil, heavier than petrol and naphtha and is supplied through pipelines, tucks, bunker ships, or retail fuel channels. It is utilised in numerous end-user industries such as electricity generation, road, and domestic waterways, marine bunkers, petrochemicals, agriculture, commercial, and residential functions. The global fuel oil industry report comprises segments based on application (road and domestic waterway, marine bunkers, petrochemicals, residential/commercial/agricultural and electricity generation) and region (Europe, North America, Asia Pacific, Latin America, and the Middle East and Africa).

The Asia Pacific Region is Driving the Growth of the Industry

The Asia Pacific region has the biggest oil refining capability in the world, with China and India being the leading countries in the region. The market is estimated to expand owing to the increasing transportation industry in prominent countries, in which SUVs and trucks hold a large part of the automotive market. Along with this new refining, components are concentrated in places specifically in the Asia Pacific region, where the demand need is growing.

Several industries, such as transportation and petroleum refineries are rapidly increasing their need for energy across the globe. Hence, a huge amount of transportation activities, a rising volume of modes of transportation, and the concerning effectiveness of energy are propelling the demand for transportation energy. Owing to issues like shortage of substitute fuels such as biofuels and elevated biofuel manufacturing costs, technology restraints for battery-operated electric vehicles, and the cost of batteries, the transportation segment consumes 80% and above of the total fuel oil that is utilised by all end-user industries. Moreover, increasing consumer spending power due to growing per capita income in developing countries like India, Korea, and Thailand is projected to encourage the further consumption of energy. This rising demand for fuel in the transportation sector will substantially is adding to the growth of the global fuel oil market.

However, the elevating costs of fuel may be a big concern, which is likely to restrict the progress of the international market.

Best Procurement Practices

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

Category Management Studies

Fuel oils are obtained from refined or processed crude oil to get the right requirements for specific utilisation. Further, fuel oil is divided into two primary categories – residual oils and distillate oils that are manufactured by the combustion methodology. These fuel oils are grouped by their grade numbers as numbers 1 and 2 are called distillate oils, and residual oils are in grade numbers 5 and 6. Additionally, grade oil number 4 is either a blend of residual and distillate oils or distillate oil. Moreover, the fuel oils are chemically improved with the use of dispersants, and antioxidants inhibitors to fulfil a particular demand based on their function.

Increasing Demand for Crude Oil for Various Applications is Anticipated to Further Drive the Procurement of Fuel Oil

The increasing demand for crude oil for numerous usages across the globe by its consumers is the most important factor that is leading to the growth of the fuel oil market. In addition, a rise in the production of crude oil in developed countries may result in the increased manufacturing of fuel oil, which may strengthen the growth of the market in the future. Furthermore, the growth in the demand for electricity in several power plants is likely to add to the development of the overall fuel oil market, in the near future. Also, application in the marine segment can make the biggest contribution to the global fuel oil market due to the increased product utilisation in various marine-related activities.

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

Key Industry Players Mentioned in the Fuel Oil Industry Report

• Exxon Mobil Corporation
• Shell Plc
• British Petroleum Plc
• Chevron Corporation
• TotalEnergies SE
• Emery Oleochemicals LLC

Market Landscape

With the existence of numerous well-placed companies in the market, the global fuel oil market is enormously competitive. Many of these players are likely to hold a large share in the global market, in the upcoming future. Expansion strategies such as introducing novel products may help these leading players to achieve a competitive edge over the other companies in the years to come. Partnerships with smaller companies are supporting the major fuel oil industry players to augment their market presence and boost their revenues.

Key Initiatives by Companies

• In February 2022, a branch of ExxonMobil, Esso PNG P’nyang Limited, endorsed a joint agreement with Papua New Guinea to work towards the progress of the P’nyang Liquefied Natural Gas venture.