Fuel Oil Market

Fuel Oil Market - An Overview

The global fuel oil market is expected to witness moderate growth during the forecast period between 2021 and 2031.

Fuel oil is a product, which is obtained as a residue after a distillation process. It can also be procured by heating liquid oil in a boiler. Some of the key constituents of fuel oil include hydrocarbons, alkaline, aromatics, and cycloalkanes.

Fuel oil has been deployed in several application areas such as road and domestic waterways, agriculture, electricity generation, and petrochemical industries. Generally, fuel oil is delivered to end-users through bunker ships, retail fuel outlets, and pipelines.

The outbreak of the COVID-19 pandemic negatively impacted the growth in the overall fuel oil market. With governments imposing lockdowns and social distancing regulations in a bid to contain the spread of the virus, various industries were forced to function with reduced labor or shut down permanently.

This affected the production of crude oil and in turn, the quantity of fuel oil produced and affected the overall market growth.

However, with the subsequent decline in cases and availability of different vaccines, industries are expected to start operations close to full capacity soon, leading to increased fuel oil production and assisting in overall market growth.

Fuel Oil Market - Trends and Opportunities

Rising demand for crude oil for different applications globally is the key growth driver for the fuel oil market.

Also, growing production of crude oil in leading economies could lead to increased production of fuel oil, which could bolster market growth in future.

In addition to this, increasing demand for electricity in various power plants is expected to contribute to the growth of the overall fuel oil market, in the coming years.

Growing economic development, especially in under-developed regions of the world could also propel the global fuel oil market, in the years ahead.

Marine application segment could make the largest contribution to the overall fuel oil market because of increased product deployment in different marine-related activities.

Fuel Oil Market - Competitive Landscape

The global fuel oil market is extremely competitive, with the presence of several well-established market players. Many of them are expected to account for a large share in the overall market, in the coming years.

Growth strategies such as novel product launches could help well-established fuel oil market players gain a competitive edge over other players, in future.

Collaboration with smaller players could help prominent fuel oil market players expand their market presence and increase their revenue shares.

In February 2022, Esso PNG P’nyang Limited, a subsidiary of ExxonMobil signed a collaborative agreement with Papua New Guinea for the development of the P’nyang Liquefied Natural Gas project.

Some of the leading fuel oil market players include Exxon Mobil Corporation, BP Oil Pharmaceuticals Limited, Chevron Corporation, and Royal Dutch Shell PLC.

Fuel Oil Market - Regional Assessment

The global fuel oil market is divided into five regions, namely, North America, Europe, Asia Pacific, Latin America, and Middle East and Africa.

North America is expected to be the dominant region in the global fuel oil market because of increasing application of heating oil and rising crude oil demand in countries such as US and Canada.

Asia Pacific is anticipated to offer lucrative growth opportunities for the global market in the coming years owing to increased industrial development in countries such as India and China, leading to high demand for crude oil in these economies.

Middle East and Africa is expected to witness strong growth in the fuel oil market in future owing to increased oil production in countries belonging to the region.

Other regions of the world such as Europe and Latin America are expected to witness moderate growth in the overall fuel oil market, in the coming years.