HS Code:
The 'Testing 25 degrees A.P.I. or more' category refers to petroleum products with a specific gravity of 25 degrees A.P.I. or higher, often associated with lighter crude oils or refined products under the Harmonized System (HS) Code classification. This category is critical in the global energy market, as it includes products used for fuel, industrial applications, and chemical feedstocks. The A.P.I. (American Petroleum Institute) gravity is a measure of how heavy or light a petroleum liquid is compared to water, with higher values indicating lighter, more valuable products.
Total Trade Volume
USD 150 billion
Data from 2022
Source
United Nations Comtrade Database, International Trade Centre (ITC)
USD 45 billion
30% of total trade of total trade
Increasing
USD 30 billion
20% of total trade of total trade
Stable
USD 20 billion
13% of total trade of total trade
Decreasing
USD 15 billion
10% of total trade of total trade
Increasing
USD 10 billion
7% of total trade of total trade
Stable
Average Rate
5.2% ad valorem
Highest Rate
12% (imposed by certain developing economies)
Lowest Rate
0% (under free trade agreements like USMCA and EU-GCC)
Shift towards lighter crude oils
Increased demand for products testing 25 degrees A.P.I. or more due to refining efficiency and lower sulfur content, aligning with global environmental regulations.
2021-2022
Geopolitical disruptions
Sanctions and conflicts affecting key exporters like Russia have led to supply chain volatility and price spikes, redirecting trade flows to other regions.
2022
Growth in renewable energy
Long-term demand for petroleum products may decline as countries invest in alternative energy, though short-term reliance remains high.
2020-2023
OPEC+ announced production cuts in late 2022 to stabilize oil prices, impacting the supply of lighter crude oils in this category.
October 2022
Increased prices and tightened supply for importing nations, benefiting exporters like Saudi Arabia and UAE.
The European Union imposed a ban on Russian oil imports, affecting the trade volume of petroleum products including those in the 25 degrees A.P.I. or more category.
December 2022
Shifted trade patterns, with increased imports from the Middle East and North America to Europe.
The U.S. released significant volumes from its Strategic Petroleum Reserve to curb rising fuel prices, impacting global trade dynamics.
March 2022
Temporary increase in supply of lighter crude products, stabilizing prices in key markets.