Crude Oil Price trends, Production, Market Analysis

Crude Oil Price trends, Production, Market Analysis

Crude Oil Explained with Applications

Crude oil is a liquid petroleum product that is present in nature. It is made up of hydrocarbon deposits along with other organic matter, which was formed from the remains of plants and animals that lived millions of years ago.These remains were covered in layers of silt, sand, and rock in extreme heat and pressure that transformed them into a fossil fuel that gets refined to make usable products like diesel, gasoline, liquefied petroleum gases, and petrochemical feedstock.

It is a nonrenewable resource of energy that can run out in the future. Usually, crude oil makes up for around 85% carbon by weight, and the rest is majorly hydrogen. Crude oil consists of significant quantities of oxygen, sulfur, and nitrogen.

Crude oil’s primary application is its use as a fuel that powers various vehicles. It is also used for heaters, generators, and other equipment. In plastic production, crude oil plays a pivotal role as a feedstock. Petroleum is extensively used to create clothing items. It helps make clothing that is non-flammable and colourful. Rayon, Polyester, nylon, and a few fake furs employ crude oil for their production. Polyurethane foam is a product made of petroleum which is further used to make couch cushions, flooring, linoleum, carpet etc. In the food industry, it is used in the production of several food items as it is crucial in the process. Some fertilisers used to grow the food contains crude oil.

Crude Oil Production

Crude oil refining begins with the breakdown of crude oil into several components, which are selectively reconfigured into new products. All Petroleum refineries employ a complex and expensive industrial facility involving three basic steps:

  • Separation- Modern-day separation includes piping of crude oil via hot furnaces. The consequent liquids and vapours are released into distillation units. All refineries contain atmospheric distillation units, whereas the more complex ones might have vacuum distillation units.
  • Conversion– Following distillation, heavy, lower-value distillation fractions are further processed into lighter, higher-value products like gasoline. At this stage, fractions from the distillation units get converted into streams (intermediate components) that finally result in final products.
  • Treatment– In the end, the final treatment is done to make gasoline; refinery technicians cautiously mix several streams from the processing units. Octane level, vapour pressure ratings, and a myriad of specific considerations select the blend of gasoline.

Key Players

The market comprises the following vital players that participate in various market activities like capacity expansions, latest developments, acquisitions, investments, mergers, and plant turnarounds:

  • Exxon Mobil Corporation
  • BP plc
  • Royal Dutch Shell PLC
  • Total SA
  • Gazprom
  • Chevron Corporation
  • Petroliam Nasional Berhad (PETRONAS)

Crude Oil Price Evaluation

North America

The global Crude Oil market witnessed a flump in prices in July amid the climbing inflation and increased rates in the western regions. During the last month, a complete embargo was decided by the EU that on Russian Ural Crude imports, weakening the market player sentiments further. Furthermore, the resurrection of COVID in China led to authorities imposing a restriction on 30 million people in six different provinces. To retort, Crude offers since the month’s beginning dipped by USD 10 per barrel, so making it face a sharp dip in crude oil production cost. Additionally, many market experts marked this event as the beginning of a recession in the western markets.


WTI crude oil price persisted to fall recently, and a completely steep downtrend was seen in September last week. In spite of the fact that the value of global crude oil has been tumbling, supplies stayed tight. Accordingly, regular ups and downs and increased volatility in prices were observed for the product in the international market. Moreover, the consumption of crude oil stayed strong in the Indian market as the market was hit by the festivities. In addition, key participants are worried about the future of crude, as OPEC might choose a supply cut in the approaching weeks.


The German economy was attempting to lower its reliance on Russian energy. Yet, after weeks of Rhine’s very low water levels, the logistics were disrupted, which added to the energy headache of Germany, with the sector temporarily leaning towards more coal and crude oil as a result of Russia’s demand for energy imports plunging. The growth of crude oil in the Russian energy scenario is the main reason for the price rise of Crude oil in the German market.

Crude Oil Market Dynamics with its applications, production process, price analysis and major industry leaders are some of the most crucial factors that need to be considered while making a strong hold over the market considering crude oil procurement and supply chain. Procurement Resource has been making hefty strides substantiating a plethora of industries and industry leaders make a successful spot for themselves through exhaustive industry reports, comprehensive pre-feasibility reports and price trends, and production cost reports.


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