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📦 Mineral Fuels, Mineral Oils and Products of Their Distillation; Bituminous Substances; Mineral Waxes

Mineral Fuels, Mineral Oils and Products of Their Distillation; Bituminous Substances; Mineral Waxes

HS Code:

📦

Overview

The category of Mineral Fuels, Mineral Oils and Products of Their Distillation; Bituminous Substances; Mineral Waxes (HS Code: 27) encompasses a wide range of energy-related products, including crude oil, natural gas, coal, petroleum products, and bituminous substances like asphalt. This category is a cornerstone of global trade due to its critical role in energy production, industrial processes, and transportation. It represents one of the largest traded commodity groups worldwide, driven by the energy demands of both developed and emerging economies. Trade patterns are influenced by geopolitical factors, production capacities, and environmental regulations.

Total Trade Volume

USD 2.1 trillion

Data from 2022

Source

United Nations Comtrade Database & World Trade Organization (WTO)

Tariff Analysis

Average Rate

5.2%

Highest Rate

12% (applied by certain developing countries on petroleum products)

Lowest Rate

0% (under free trade agreements like NAFTA/USMCA and EU internal trade)

Common Restrictions

  • Export quotas on crude oil in OPEC countries
  • Import licensing requirements for refined products
  • Environmental standards and carbon taxes on fossil fuels
  • Sanctions and trade embargoes on specific countries (e.g., Iran, Russia)

Market Trends

Shift towards renewable energy sources

Reduced long-term demand for fossil fuels, particularly coal and crude oil, as countries invest in solar, wind, and hydrogen technologies.

2020-2023

Geopolitical instability in key producing regions

Price volatility and supply chain disruptions due to conflicts in the Middle East and sanctions on Russia affecting global oil and gas markets.

2022-2023

Increase in shale oil and gas production

Growth in exports from the United States and Canada, reshaping global supply dynamics and reducing dependence on traditional OPEC suppliers.

2018-2023

Recent Developments

OPEC+ Production Cuts

OPEC+ announced production cuts of 2 million barrels per day to stabilize oil prices amidst global economic uncertainty and inflation pressures.

October 2022

Led to a temporary spike in oil prices, affecting importing countries' energy costs and inflation rates.

EU Ban on Russian Oil Imports

The European Union implemented a phased ban on Russian crude oil and refined products as part of sanctions following the Ukraine conflict.

December 2022

Redirected trade flows, with increased imports from Middle Eastern and African countries, while Russia pivoted to Asian markets like China and India.

G7 Price Cap on Russian Oil

A coalition of G7 countries introduced a price cap on Russian oil to limit Moscow's revenue while maintaining global supply stability.

December 2022

Created market uncertainty, with mixed compliance and challenges in enforcement, impacting global oil trade patterns.