The “Black gold’ is often referred for “Crude Oil”. Crude oil is a raw natural resource that is extracted from the earth and refined into products like furnace oil and more. In 2023, global consumption averaged 101.1 million barrels per day (b/d), slightly increased from the 2019 pre-pandemic record of 101.0 million b/d.
Indian crude oil consumption on plays a significant role in the international market, the demand of oil is fueled by the nations growth and increasing economic prosperity. The nation is totally depended on the import from various counties any change in production of crude oil price can cause a serious problem to India, securing reliable and affordable crude oil supplies is critical to sustain India’s economic growth. Global oil consumption per capita is 5 barrels of oil (199 gallons) per person yearly (based on the 2016 world population of 7,464,022,049 people) or 0.5 gallons per capita per day.
Production of Crude Oil
Oil mainly produces by drilling methods, and Venezuela hold highest oil reserve in the world around 18%.
The USA is top crude oil producer in the world following by Saudi Arabia, Russia, China, Canada. The Organization of the Petroleum Exporting Countries (OPEC) is an organization of member countries hold the majority of the world’s crude oil reserves. OPEC controls 40% of the world’s oil supply and almost 80% of the world’s oil reserves, Because of the large market share, the decisions OPEC makes can affect global oil prices, in 2023 the OPEC announce the production cut of 1 million barrels per day which effect the crude oil price 2023.
Consumption of Crude Oil
The USA is also a top consumer of the world following by China, India, Japan and Russia. The China and India 2 biggest economic totally depended on the import and any fluctuation Consumption of crude oil can cause the change in Furnace oil prices too.
Crude Oil Price in 2023
- The Crude oil prices 2023 show a roller-coaster ride in the First half of 2023 saw price fluctuations due to EU’s Russia oil ban, central bank rate hikes, and economic concerns, the crude oil prices 2023 India and international market was less volatile than 2022.
- Geopolitical tensions in the second half caused more price fluctuations. In July 2023, Saudi Arabia implemented a voluntary cut of 1.0 million b/d, leading to a 25% increase in prices.
- Additionally, OPEC+ decided to extend production cuts throughout 2024. September 2023, low U.S. crude inventories drove prices to $98/b, but as inventories increased, prices dropped to $91.2/b.
- In December, prices bounced back due to a surge caused by the “Red Sea attacks” and caused 8% increase in crude oil prices in India and international market and also impacting the furnace oil prices.
The price of Brent crude oil price in India and international market averaged $83 per barrel (b) in 2023, down from $101/b in 2022, a difference of $19/b after rounding.
Future Outlook
The future outlook of the crude price will majorly depend on various factors like Global economic health, Geopolitical events, OPEC+ production decisions, Growth of renewable energy. The crude oil prices in India and international market are expects relatively flat prices around $82.
