Crude oil: Overview
From petrol to plastics: everything a barrel becomes
What this tab covers What the commodity is used for, why, in what volumes and with what alternatives, and its chain from mine or field to end user. Also the latest price moves, top recent news, three things to know, and buttons into each tab.Key uses
| Use | Share | Annual volume | Why this commodity | Alternatives |
|---|---|---|---|---|
| Road transport fuels (petrol and diesel) | 45% | about 46 million barrels a daybasis | Liquid fuels pack about 45 MJ per kg, are easy to store in a vehicle tank and refuel in minutes, and the world has a sunk network of refineries, pipelines and roughly a billion and a half combustion vehicles built around them. In India diesel moves most freight and petrol most two-wheelers. IEA World Energy Outlook 2024 sector balance (rounded, indicative); Energy Institute Statistical Review 2025 | Battery electric vehicles (cars, two- and three-wheelers, buses) Compressed natural gas and LNG (Indian city fleets, trucks) Ethanol and biodiesel blends (India targets 20% ethanol in petrol) Rail freight electrification |
| Petrochemical feedstock (naphtha, LPG, ethane for plastics and fibres) | 14% | about 14 million barrels a daybasis | Oil and gas liquids are the cheapest, most concentrated source of carbon and hydrogen for crackers that make ethylene, propylene and aromatics. This is the fastest-growing slice of oil demand because plastics have few cheap substitutes and are not burned, so electrification does not touch it. IEA World Energy Outlook 2024 (rounded, indicative) | Natural gas liquids and ethane (US crackers) Coal-to-olefins (China) Recycled plastics Bio-based feedstocks (small scale) |
| Aviation (jet fuel and kerosene) | 7% | about 7 million barrels a daybasis | Aircraft need the highest energy per kilogram available. Jet fuel's density and cold-flow properties suit long flights, and batteries are far too heavy for anything beyond very short routes. IEA World Energy Outlook 2024 (rounded, indicative) | Sustainable aviation fuel (HEFA, alcohol-to-jet, blended up to 50%) High-speed rail on short routes Hydrogen aircraft (prototype stage) |
| Shipping (marine bunker fuel) | 5% | about 5 million barrels a daybasis | Heavy fuel oil and marine gasoil are cheap, dense residues from refining that slow-speed ship engines burn efficiently. Since 2020 IMO sulphur rules have pushed ships to very-low-sulphur fuel oil or scrubbers. IEA World Energy Outlook 2024 (rounded, indicative) | LNG-fuelled ships Methanol and ammonia (new orders, early stage) Wind-assist and slow steaming (efficiency) |
| Buildings (LPG and kerosene for cooking, heating oil) | 7% | about 7 million barrels a daybasis | LPG is portable in cylinders and needs no pipe network, which is why India pushed it into rural kitchens to replace wood and dung. Heating oil persists in older homes in Europe and the US where gas grids do not reach. IEA World Energy Outlook 2024 (rounded, indicative) | Piped natural gas Electric induction cooking and heat pumps Biogas |
| Industry heat, asphalt, lubricants and other | 22% | about 22 million barrels a daybasis | Bitumen from heavy crude is the binder for most roads, lubricants have no easy substitute in engines and machines, and fuel oil and petcoke give cheap process heat. Oil-fired power is now small: 695 TWh in 2024, about 2% of world generation, mostly in the Middle East. Energy Institute Statistical Review 2025 (oil-fired generation); residual share indicative | Natural gas and electricity for process heat Concrete roads Synthetic and bio-lubricants |
From mine to user
- Exploration and appraisal Seismic surveys and wildcat wells locate traps; an offshore exploration well can cost tens of millions of dollars, and most find nothing commercial.
- Field development and production Wells, platforms or pads are built and crude flows by natural pressure, pumps or water injection. World output was 96.9 mb/d of crude, condensate and NGLs in 2024 (Energy Institute).
- Separation and stabilisation At the wellhead crude is separated from associated gas, water and sand, then blended into a named export grade such as Arab Light, Murban or Basrah Medium.
- Transport to refineries Pipelines move inland crude; tankers carry seaborne crude, with a VLCC holding about 2 million barrels. About one fifth of world oil supply passed through Hormuz before the 2026 war (Brookings, June 2026).
- Refining Distillation splits crude into fractions; crackers, reformers and cokers convert heavy parts into light fuels. World capacity was 104.5 mb/d and runs 83.0 mb/d in 2024; India ran 5.32 mb/d through 5.17 mb/d of capacity (Energy Institute).
- Product distribution Product pipelines, coastal tankers, rail and trucks move fuels to depots and retail outlets. IndianOil's cross-country pipelines moved 105.6 Mt in FY2026 (IOC).
- End use Fuels are burned in engines, boilers and kilns; naphtha and LPG go to crackers for plastics; bitumen and lubricants are used as materials.
Price movement snapshot 2026-10-25
Brent crude futures (ICE, front month) 112 US$/barrel Close 2026-10-23 · Yahoo Finance 1 week +1.7% 6 months +3.2% World production 4,543 million tonnes, 2024 Largest producer United States 18.89% of worldThree things to know
- In 2024 dollars the 1864 oil price, $166 a barrel, beats every later annual average, including 2011's $155 (Energy Institute).
- Gulf posted oil prices quadrupled in months, from $2.90 in mid-1973 to $11.65 in December 1973 (Yergin).
- Proved oil reserves grew from 1,301 billion barrels in 2000 to 1,732 billion in 2020, despite record pumping (Energy Institute).
Top recent news snapshot 2026-10-25, last 30 days
- Oil prices fall as traders hope for diplomatic progress in Middle EastCNBC · 2026-10-20
- BMI Predicts Brent Crude Will Remain Above $100 for MonthsCrude Oil Prices Today | OilPrice.com · 2026-10-12
- Oil Prices Lower On G-7 Fuel Release PlanWSJ · 2026-10-02
- Oil prices today: Brent crude tops $110 as Middle East tensions threaten shipmentsThe Times of India · 2026-10-21
- Oil prices surge after Trump rejects Iran’s plan to reopen Strait of HormuzAl Jazeera · 2026-09-28