Crude oil refers to the unrefined petroleum (naturally occurring hydrocarbons). Crude oil is a non-renewable source of energy obtained from drilling earth and is found alongside natural gas and saline water. Through the process of fractional distillation, crude oil is refined and processed to obtain diesel, petrol, kerosene and other petroleum products that have myriad of applications; ranging from acting as a fuel in combustion engines to a raw material for plastics manufacturing.

The global crude oil market was valued at $1618.81 billion in 2017 & is estimated to generate net revenue of approximately $2141.26 billion by 2026, growing at a CAGR of 3.18%.  The base year considered for the market study is 2017 and the forecasted period is between 2018-2026. Several factors aiding to the market growth are:

• Booming transportation industry
• The rise in import & export of crude oil
• Rising demand for petroleum products
• Growing demand for fertilizers and petrochemicals in the agriculture sector
• Increased number of active oil rigs across several geographies

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However, the market for crude oil is primarily driven by rising transportation sector. Growing transportation sector globally is the key factor driving adoption of crude oil products such as petrol, diesel, kerosene, liquefied petroleum gas (LPG), jet fuels, etc. Growing vehicle sales across the globe are increasing the demand for petroleum products, which in turn is boosting the growth of crude oil market.

In 2017, Gasoline dominated the application segment of global crude oil market by capturing the largest market share of over XX% along with an estimated revenue of approximately $XX billion. Rising automobile sales globally is expected to be a key driver for augmenting the demand for gasoline since it acts as one of the primary fuel for the automobiles. According to the International Organization of Motor Vehicle Manufacturers (OICA), the overall automobile sales were recorded at about XX million in 2017, approximately by XX% rise as compared to approximately XX million of the total automobile sales recorded globally in 2016. Hence, these growing automobile sales are expected to boost the global gasoline market. The increased sales of the gasoline-powered vehicle across the regions is also expected to drive the crude oil market over the forecast period. On the other hand, the LPG segment is expected to have the fastest CAGR of XX% during the forecast period. According to World LPG Association (WLPGA), domestic use of LPG accounted for XX% of the global consumption of LPG in 2015. This high percentage can be attributed to the high use of LPG as fuel in cooking equipment and heating appliances. The consumption is expected to increase in line with the increasing population globally, as the demand for cooking fuel is also expected to increase with an increase in the population.

Though the Global Crude Oil market has numerous growth drivers, the market growth is curtailed by certain challenges. Key factors restraining the growth of global crude oil market are- fluctuations in crude oil prices & adverse impact of seasonal changes on the demand and supply of the crude oil. Another major challenge in the market is Geo-political issues. The rise in the territorial and regional disputes among different nations is expected to hinder the market growth in the coming years.

The Global Crude Oil Market has been segmented on the basis of Crude Oil Type & Applications. Their further segmentation is as follows:

Market by Type:

• Heavy crude oil
• Light crude oil

Market by Application:

• Gasoline
• Diesel fuel& heating oil
• Jet fuel
• LPG
• Asphalt
• Other Applications

The report scope is restricted to revenues generated from unit sales of crude oil and does not include revenues generated from the transportation of crude oil. The total market revenue is calculated based on the net consumption of crude oil globally.

On the basis of geography, the market for crude oil has been segmented into 4 major regions, as follows;

• Crude Oil  North America Market: United States & Canada
• Crude Oil  Europe Market: United Kingdom, Germany, France, Spain, Russia & Rest of Europe.
• Crude Oil  Asia Pacific Market: China, Japan, India, Indonesia, & Rest of Asia Pacific
• Rest of World: Latin America, Middle East & Africa

Geographically, Asia Pacific accounts for the largest share in the crude oil market. It captured the largest market share in terms of revenue of around XX% and a revenue of approximately $XX billion in 2017. The Asia-Pacific crude oil market is expected to be on up surging trend owing to rising imports of crude oil, growing vehicle sales, rising plastics production in China and strategic alliance between countries to promote oil exploration activities in India. As per the Organization of Petroleum Exporting Countries, as of 2016, the total imports of crude oil in the region accounted for around XX thousand barrels/day earlier; which was around XX thousand barrels/day in 2015. This shows the rising imports of crude oils. This import is primarily due to increasing vehicle sales and the well–established plastics industry.

Moreover, the Middle East region is expected to provide lucrative growth opportunities over the projected years. The countries in the Middle Eastern region are major oil exporting nations across the globe. As per the Organization of Petroleum Exporting Countries, in 2016, around XX% of global oil reserves were in the Middle Eastern region. In 2016, Venezuela stood first for OPEC proven crude oil reserves; accounting for XX%, followed by Saudi Arabia which accounted for XX% of the OPEC total crude oil reserves. High consumption of oil for electricity production act as a primary driver for the growth of crude oil market in the Middle East region. As per the U.S. Energy Information Administration in 2017, XX% of the total electricity production in the Middle East is met through fossil fuels. Oil accounts for XX% of the total electricity production in the Middle East.

The global crude oil market has been segmented on the basis of type and application. Market by type comprises of heavy crude oil & light crude oil. Market by application is further segmented into gasoline, diesel fuel & heating oil, jet fuel, LPG (Liquefied Petroleum Gas), asphalt and others (chemicals such as ethylene, benzene and propylene).

Some of the key players involved in the global crude oil market are;

• Saudi Aramco,
• National Iranian Oil Company,
• China National Petroleum Corporation,
• Gazprom,
• Exxon Mobil
• Other Companies.

Market share analysis along with Company profiles of the key market players are discussed in detail. Collaboration, partnerships, acquisitions, and product launch, are some of the key strategies followed by companies within the crude oil market. For instance, in May 2018, Royal Dutch Shell entered into a joint venture with the China National Offshore Oil Corporation (CNOOC) for the production of its new petrochemical units in China. In April 2018, Marathon Petroleum Corporation signed a merger agreement with Endeavour to acquire all of ANDV’s outstanding shares, representing a total equity value of $23.3 billion and a total enterprise value of $35.6 billion. Furthermore, in March 2018, National Iranian Oil Co. drilled new wells in its Azar oil fields and is expected to increase the production to 65,000 b/d by the end of 2018. It currently stands at 30,000 b/d.

Key Findings of Crude Oil Market are as follows;

• Asia Pacific leads the global crude oil market by capturing the largest market share of over XX% in 2017.
• Although the world observed a decrement in the active oil rigs between 2015 to 2016, regions such as the Middle East along with Eastern Europe & Eurasia observed a substantial hike in the active rigs.
• Light crude oil dominates the type segment of global crude oil market by capturing the largest market share in 2017.
• Growing demand for fertilizers and petrochemicals in agriculture sector is adding growth to the crude oil demand.