Light Diesel Oil Price Trend

For the Fourth Quarter of 2021

North America

In January, Brent crude oil spot prices averaged 87 USD/b, up 12 USD from December 2021. The prices had been steadily rising since mid-2020, owing to steady draws on global oil inventories, which averaged 1.8 million barrels per day (b/d) during the third quarter of 2020 and the end of 2021. They have also increased as a result of rising market concerns about the prospect of oil supply disruptions, particularly as a result of tensions in Ukraine, and falling market concerns about the Omicron variation of COVID-19 having widespread implications on oil use.

Asia

In India, prices as of 1st December 2021 were around 50840 INR/kL. In January, Saudi Arabia's state oil company Aramco boosted the official selling prices (OSPs) for all crude grades sold to Asia's key market for the second month in a row, following strong advances in the Middle East spot market the previous month. The price hikes were announced on Sunday, despite the Organization of Petroleum Exporting Countries and their Allies, including Russia, deciding last week to keep raising supplies by 400,000 barrels per day in January. On Monday, global crude futures jumped by more than 1 USD/b after Saudi Arabia raised prices.

Europe

The price of heating oils in Italy as of 15-Nov 2021 was close to 1.4 EUR/L whereas in December, the prices fell significantly reaching a value of about 1.37 EUR/L, post which the prices recovered, reaching a 1.40 EUR/L by the end of December.

For First, Second and Third Quarters of 2021

North America

In the winter of 2021/22, the average price of heating oil in the United States was anticipated to reach 3.39 USD/gal. Following an energy supply constraint of fossil fuels such as natural gas and coal in Europe and Asia, energy costs rose significantly in winter. During the heating season, from October to March, prices for heating oil are collected.

Asia

Top oil exporter Saudi Arabia was projected to raise its August official selling prices (OSPs) for Asia for the second month in a row, mirroring stronger crude benchmarks. The August OSP for Saudi flagship grade Arab Light was predicted to climb by 65 cents a barrel on average, according to sources at four Asian refiners, with projections ranging from 50 cents to 70 cents a barrel. In India, industrial fuel was at high values during March 2021.Per kilolitre light diesel oil prices were 45,260 INR indicating an increase of approximately 620 INR or by 1.39%.

Europe

Goff heating oil market price for July 2021 was 77.32 USD/barrel at the beginning of the month and 76.38 USD at the end of the month. The highest monthly price was 78.42 USD/barrel, while the lowest monthly price was 69.24 USD/barrel. Crude oil had a good start to 2021, in stark contrast to last year, when the pandemic wrecked demand for all commodities, resulting in a price collapse that lasted well into 2020.

For the Year 2020

Asia

In India, light diesel oil prices for the second half of June 2020 across all the marketing depos increased by around 3540 INR/kL or 13.23%, to a value of 30,290 INR/kL. For June 2020, the Pakistani government decreased light diesel oil prices by 9.37 INR/l., petrol by 7.06 INR/L and kerosene by 11.88 INR/L. Following this new approval, light diesel oil prices decreased from 47.51 INR/L to 38.14 INR/L.

North America

In the winter of 2020-2021, the average price of heating oil in the United States reached 2.25 USD/gal. The prices were gathered between October and March, when the heating season was in full swing. The WTI crude oil price is the most important determining factor in home heating oil pricing in the United States.

Europe

Despite minor fluctuations, the average price of heating oil in the United Kingdom had been on the rise in the past year.  By 2020, it had reached 698.3 EUR/1000 gal. According to the French Ministry of Ecological Transition, a litre of diesel cost 1.43 EUR in the second week of August, while super unleaded petrol cost 1.59 EUR. At the height of the epidemic in May 2020, prices had dropped to 1.16 EUR for diesel and 1.23 EUR for gasoline as mounting Covid cases brought the world to a halt.

Procurement Resource Database

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Procurement Resource provides latest prices of Light Diesel Oil. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.

Chart Description: 

Procurement Resource provides prices of Light Diesel Oil for several regions around the globe, as follows:

  • North America
  • South America
  • Europe
  • Asia Pacific
  • Middle East
  • Africa

About Light Diesel Oil:

Light Diesel Oil, or LDO, is basically a blend of components from the distillation process of diesel. It is utilised in engines with less than 750 rpm, for example, in boilers and furnaces. LDO is also recognised as distillate fuel or marked oil since it is marked with a colouring substance. The flash point, that is, the lowest temperature of ignition for LDO is 66o C.

Chemical Formula of Light Diesel Oil: 

  • CxHy 

Synonyms:

  • Distillate Fuel
  • Marked Oil

Industrial Uses: 

  • Boilers
  • Furnaces
  • Air pre-heaters
  • Lower rpm engines
  • Lift irrigation pump sets
  • Fertiliser plants.
  • Bunker
  • DG (diesel generator) sets

Production Processes: 

  • Production of Light Diesel Oil via Waste Oil.

The production process of LDO involves the addition of a liquid-phase catalyst into a liquid-phase catalytic cracking furnace and addition of a gas-phase catalyst into a gas-phase cracking furnace to gasify the waste oil by heating at high-temperature. This is followed by its collection and then cooling using a cooling furnace to obtain light crude oil. This light crude oil is further processed to finally form Light Diesel Oil. 

Supplier Database: 

  • Royal Dutch Shell (Shell)
  • Chevron Corporation
  • Bajrang Petrochemicals Pvt Ltd

Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.

Methodology: 

The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).

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