Petroleum Refining Products Market

According to US Energy Information Administration (EIA), in 2020, the US consumption of liquid fuels averaged 18.1 million b/d. Moreover, the energy department also expects the demand for liquid fuels like gasoline to pick up in second quarter of 2021, reaching 8.9 million barrels a day for refined products like gasoline. The rising demand for products like gasoline as pandemic slows, and prospects of vaccination drive major growth for players in the petroleum refining products market.

Moreover, the EIA also expects demand for other products like distillate fuel oil to reach 4.12 million barrels per day in 2022, rising from 3.77 million barrels in 2020. Hydrocarbon gas liquids will reach demand of 3.52 million barrels per day in 2022, rising from 3.14 million barrels per day in 2020. Jet fuel will also experience growth, as international aviation picks up, rising from 1.74 million barrels per day in 2020 to 1.71 million b/d in 2022. Moreover, EIA also estimates the cost of acquisition for crude products will drop significantly as major changes in supply continue to drive down costs.

The EIA estimates that acquisition costs will reach $48.43 per barrel in 2022, declining from $59.36 in 2020. Moreover, this will likely result in limited savings for final consumers as retail prices for key products like gasoline will only witness a limited decline. For example, in 2020, the price of gasoline per gallon reached $2.60. This will decrease to $2.42, only witnessing a 18 cent decline while per barrel prices will decline by more than $11. Hence, the rising demand for products like gasoline, and other refined products, declining costs of acquisitions, and rising prospects in retail will drive major growth for players in the petroleum refining products market.

Rising Demand for Private Jets to Fuel Growth of Kerosene Products

Kerosene will likely witness a major growth in the petroleum refining market in the near future. Despite environmental concerns associated with this product, it remains a key fuel for cooking in traditional homes, and jet engines. The demand for this fuel is expected to increase substantially in the near future, as almost 8,000 new private jets are expected to take the skies over the next-decade. According to Guardian reports, 690 new private jets were ordered in 2019. This was a 9% increase in purchase of private jets the same year. Moreover, thanks to rising disposable income at top, the demand for private jets continues to grow. Furthermore, expansion of Aviation sector in Asia Pacific region also continues to be a major positive for growth in the petroleum refining products market. According to reports in the Economic Times, the demand for jet fuel in Asia Pacific in 2021 will reach 1.8 million b/d, rising from 700,000 b/d in 2020.

Demand for Petrochemicals, and Electricity Generation Remains High

Growing demand for electricity generation in emerging regions, and prospect of electrical vehicle expansion in developed regions of North America will promise major growth for the petroleum refining products in the near future. The market also witnesses growing demand for petrochemicals, thanks to chemical and material advancement in industries like textile. Petrochemicals are ideal for production of industrial textiles, which are expected to witness major growth, thanks to rising greenhouse projects around the world. The rising demand for petrochemicals, and electricity generation will likely result in capacity expansion, and new refinery setup in near future.

Major players active in the global petroleum refining products market include Royal Dutch Shell, Chevron Corporation, BP Plc., Exxon Mobil, SK Innovation, Total SA, China National Petroleum Corporation, S-Oil, ConocoPhillips and others.

The Petroleum Refining Products Market is Segmented as Below:

By Complexity

• Topping
• Conversion
• Deep Conversion

By Product

• Light Distillates
• Middle Distillates
• Fuel Oil
• Others

By Fuel

• Gasoline
• Gasoil
• Kerosene
• LPG
• Others

By Application

• Road transport
• Aviation
• Marine Bunker
• Petrochemical
• Residential
• Electricity Generation
• Rail & domestic
• Others

By Region

• North America
• U.S.
• Canada
• Europe
• Germany
• UK
• France
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• Japan
• China
• India
• Australia
• Rest of APAC
• South America
• Brazil
• Rest of South America
• Middle East & Africa
• UAE
• South Africa
• Saudi Arabia
• Rest of MEA