| Mark Clulow
Crude oil and fuel oil are both petroleum products, but they have different characteristics and uses. Being new to these markets, I'd like to document and share the things I learn as I go...
Crude oil is a naturally occurring liquid that is extracted from the ground.
It is a mixture of hydrocarbons, which are organic compounds made up of hydrogen and carbon.
Crude oil is processed in refineries to produce a variety of products, including gasoline, diesel fuel, jet fuel, and lubricating oil.
Fuel oil, on the other hand, is a heavier, denser product that is also derived from crude oil.
It is typically used as a fuel for heating and power generation.
Fuel oil is classified into different grades based on its viscosity and other properties, with the most common grades being No. 2 fuel oil and No. 6 fuel oil.
Fuel oil analysts are experts who analyze the supply and demand of fuel oil and provide forecasts on its price and market trends.
They also track the quality and characteristics of different grades of fuel oil, as well as the factors that affect its production and consumption.
In contrast, crude oil analysts are experts in the production, supply, and demand of crude oil, as well as the various factors that impact its price, such as geopolitical events, production cuts, and changes in global oil consumption.
Crude Oil Products
Crude oil is a versatile raw material that is processed in refineries to produce a wide range of products. Some of the most common products produced from crude oil include:
- Gasoline
- Gasoline is the most widely used transportation fuel in the world, accounting for about 50% of global oil consumption. In 2021, the global gasoline market was valued at around $2.7 trillion, with the Asia-Pacific region being the largest market.
- Diesel
- Diesel is another transportation fuel that is used in trucks, buses, and other heavy-duty vehicles. It is also used in some power generation applications. In 2021, the global diesel market was valued at around $855 billion, with the Asia-Pacific region being the largest market.
- Jet fuel
- Jet fuel is used to power commercial and military aircraft. In 2021, the global jet fuel market was valued at around $147 billion.
- Heating oil
- Heating oil is used as a fuel for residential and commercial heating systems. In 2021, the global heating oil market was valued at around $156 billion.
- Lubricating oil
- Lubricating oil is used to reduce friction and wear between moving parts in engines and machinery. In 2021, the global lubricating oil market was valued at around $44 billion.
- Petrochemicals
- Petrochemicals are chemicals that are derived from petroleum and are used in a wide range of products, including plastics, rubber, and pharmaceuticals. In 2021, the global petrochemicals market was valued at around $790 billion.
It is worth noting that the market values provided above are based on estimates and may vary depending on factors such as regional demand, supply chain disruptions, and geopolitical events.
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About The Author
PMP & PRINCE 2 Certified geeky artist, more than a decade in China (2007 - 2018) gave me a huge range of skills and experience across all sectors and all areas of business, from start-ups to global 500 enterprises, including fluency in Mandarin Chinese and a deep understanding of Chinese culture.
