H1 2023: The pricing trajectory of Crude Oil in the Asian region displayed diverse dynamics in the first half of 2023. In the first quarter, participants in the Asian market began favouring Russian crude oil for its cost-effectiveness, seeking to maximize profits. The sluggish recovery of China posed a global concern within the crude oil market, impeding the anticipated global price surge. Notably, key Asian nations, including India, bypassed Western and U.S. bans and sanctions to initiate crude oil imports from Russia. Additionally, a significant increase in global crude oil inventory levels occurred due to unexpectedly subdued demand in the international market coinciding with a simultaneous rise in inventory levels. Moving into the second quarter, the crude oil landscape in the Chinese market displayed persistent volatility. The sluggish economic growth observed in both China and the United States influenced the fluctuating prices of crude oil. Despite elevated inventories held by OPEC+ nations, prices exhibited an overall rise in April on a monthly basis. However, OPEC+'s announcement of a production cut aimed at safeguarding margins contributed to a decline in prices during May in China. Furthermore, the lethargic economic growth and mounting concerns about a recession in the United States impacted the demand fundamentals for crude oil in China.
The Asia Pacific Crude Oil market reached of around 35.3 million tonnes in 2022 and is expected to expand at a CAGR of 3.52% till the year 2032.
Crude oil, a fundamental commodity in the global energy sector, serves as a foundational resource with diverse applications across industries. Primarily, it functions as a key raw material for fuel production, generating essential energy products such as gasoline, diesel, jet fuel, and heating oil, crucial for both transportation and industrial processes. Beyond fuel production, crude oil assumes a central position in the petrochemical sector, acting as the precursor for a wide array of valuable products, including plastics, synthetic rubber, solvents, and various chemicals essential to manufacturing processes. Additionally, base oils derived from crude oil play a crucial role in lubricant manufacturing, aiding in the efficient operation of engines and machinery by reducing friction and wear. The significance of crude oil extends to asphalt production, making substantial contributions to road and infrastructure construction. While it is used for electricity generation in certain power plants, alternatives like natural gas and coal prevail in this domain. Crude oil is also the origin of bitumen, a vital component in asphalt and road construction, and contributes to fertilizer production, supporting agricultural practices and improving crop yields. Specific crude oil fractions yield waxes that find application in various sectors, including cosmetics, candles, and packaging materials. The Asia Pacific Crude Oil market is likely to touch 50 million tonnes in 2032.
On the basis of region, Asia Pacific Crude Oil market is segmented into China, India, Japan, South Korea, and the Rest of APAC. Among these, China is the leading consumer of Crude Oil. In 2022, China consumed roughly 40% of the Asia Pacific Crude Oil market demand. Also, India will most likely experience a hike of Crude Oil in the coming years due to the continued demand from the fuel sector. Robust economic growth, particularly in powerhouse economies such as China and India, propels accelerated industrialization, urbanization, and a notable surge in energy consumption. The Asia-Pacific region, characterized by its substantial and expanding population, along with the escalating pace of urban development, maintains a consistent demand for crude oil to meet the growing requirements of industries and urban centers. Serving as a prominent manufacturing and industrial hub, the Asia-Pacific region extensively depends on products derived from crude oil, ensuring a sustained and substantial demand. Ongoing infrastructure development initiatives, a flourishing transportation sector, and investments in energy, along with government initiatives, further contribute to the continuous consumption of crude oil. The industrial sector, in turn, heavily relies on crude oil as a crucial feedstock for manufacturing processes, facilitating the production of petrochemicals, plastics, and synthetic rubber.
Based on the end-user industry, the Asia Pacific Crude Oil market is segmented into different industrial sectors that include Light Distillates, Middle Distillates, Fuel Oil, and Others. However, Light Distillates is the leading segment as the consumer of Crude Oil. This industry consumed approximately 33% of the market in 2022 and is anticipated to remain the leading consumer in 2032. Light distillates, derived from the initial distillation of crude oil, play a vital role in various industrial applications. Naphtha, a significant component of light distillates, serves as a crucial feedstock for gasoline production, powering internal combustion engines in automobiles and contributing to the transportation sector. Kerosene, another type of light distillate, is pivotal in jet fuel production, essential for the aviation industry. Additionally, certain light distillates are employed in the formulation of diesel fuel, commonly used in trucks, buses, and various vehicles. Beyond the realm of fuels, light distillates find applications as solvents in laboratories and industrial processes, contributing to the production of cleaning agents, degreasers, and household products. They play a key role in the agricultural sector, utilized in the formulation of pesticides and herbicides. Furthermore, light distillates serve as feedstock for the petrochemical industry, undergoing processes like cracking to produce ethylene and propylene, essential for the manufacturing of chemicals and plastics.
Major players in the production of Asia Pacific Crude Oil are Oil and Natural Gas Corporation, Oil India Limited, Cairn India, Reliance Industries Limited, China National Petroleum Corporation, Sinopec, China National Offshore Oil Corporation, and Others.
Years considered for this report:
Historical Period: 2015- 2021
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
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Objective of the Study:
• To assess the demand-supply scenario of Crude Oil which covers production, demand and supply of Crude Oil market in the Asia Pacific.
• To analyse and forecast the market size of Crude Oil
• To classify and forecast Asia Pacific Crude Oil market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Crude Oil market in the Asia Pacific.
To extract data for Asia Pacific Crude Oil market, primary research surveys were conducted with Crude Oil manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Asia Pacific Crude Oil market over the coming years.
ChemAnalyst calculated Crude Oil demand in the Asia Pacific by analyzing the historical data and demand forecast which was carried out considering the consumption of raw material to produce Crude Oils. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Organizations, forums and alliances related to Crude Oils distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Crude Oil customers and policy makers. The study would also help them to target the growing segments over the coming years, thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
ChemAnalyst calculated Crude Oil demand in the Asia Pacific by analyzing the historical data and demand forecast which was carried out considering the historical extraction and supply and demand of Crude Oil across the Asia Pacific region. ChemAnalyst sourced these values from industry experts, and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Report Scope:
In this report, Asia Pacific Crude Oil market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2022
35.3 million tonnes
Market size Volume by 2032
50 million tonnes
Growth Rate
CAGR of 3.52% from 2023 to 2032
Base Year
2022
Estimated Year
2023
Historical Data
2015 – 2021
Forecast period
2024 – 2032
Quantitative units
Demand in million tonnes and CAGR from 2023 to 2032
Report coverage
Industry Market Size, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Foreign Trade.
Segments covered
By End-Use: (Light Distillates, Middle Distillates, Fuel Oil, and Others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
China, India, Japan, South Korea, and the Rest of APAC
I am satisfied with overall performance of ChemAnalyst. Weekly updates before the final report were especially helpful and reassuring. Additional requests on the interim and/or final reports were handled in a swift and professional manner
Mr.Shin Dosho
Member - Board of Directors
Osaka Gas Co. Ltd
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What was Asia Pacific market size of Crude Oil in terms of volume for 2022
Ans:
The Asia Pacific market size of Crude Oil was approximately 35.3 million tonnes in 2022.
Q2.
What are the major end-use industries of Crude Oil?
Ans:
Crude Oil is used in a wide range of end use industries including Light Distillates, Middle Distillates, Fuel Oil, and Others.
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