HS Code:
The 'Testing under 25 degrees A.P.I.' category refers to crude petroleum oils or oils obtained from bituminous minerals with an A.P.I. gravity of less than 25 degrees. This classification typically falls under HS Code 2709.00, which covers petroleum oils and oils obtained from bituminous minerals, crude. These are heavy crude oils, often requiring more intensive refining processes due to their higher density and viscosity. This category is significant in the global energy market as it represents a substantial portion of oil reserves in regions with heavy oil deposits.
Total Trade Volume
Approximately $150 billion USD
Data from 2022
Source
United Nations Comtrade Database & International Energy Agency (IEA)
$40 billion USD
26.7% of total trade of total trade
Decreasing due to political instability and sanctions
$35 billion USD
23.3% of total trade of total trade
Increasing due to oil sands production growth
$20 billion USD
13.3% of total trade of total trade
Stable with consistent heavy crude exports
$15 billion USD
10.0% of total trade of total trade
Increasing due to rising production
$10 billion USD
6.7% of total trade of total trade
Stable with focus on heavy oil fields
Average Rate
3.5% ad valorem
Highest Rate
8% (imposed by certain developing countries to protect domestic refining industries)
Lowest Rate
0% (under free trade agreements like NAFTA/USMCA for North American countries)
Shift towards lighter crude due to environmental regulations
Demand for heavy crude under 25 degrees A.P.I. may decline as refineries adapt to stricter sulfur content rules under IMO 2020 regulations.
2020-2023
Increased investment in upgrading refineries
Countries with heavy crude reserves are investing in complex refineries to process heavy oil domestically, reducing raw exports.
2021-2023
Geopolitical tensions affecting supply chains
Sanctions on major producers like Venezuela have shifted trade flows towards alternative suppliers such as Canada and Colombia.
2019-2023
In late 2022, the U.S. granted limited sanctions relief to Venezuela, allowing Chevron to resume limited operations, potentially increasing heavy crude exports.
November 2022
Could lead to a moderate increase in Venezuelan heavy crude supply to the U.S. market, affecting trade patterns in North America.
The nearing completion of the Trans Mountain Pipeline expansion in Canada is expected to boost heavy crude exports to Asia and the U.S. West Coast.
Expected 2023
Likely to increase Canada's share in global heavy crude trade, potentially displacing other exporters in the Pacific market.
OPEC+ announced production cuts in 2023 to stabilize oil prices, which may limit the supply of heavy crude from member countries like Iraq.
April 2023
Reduced supply could drive up prices for heavy crude, benefiting non-OPEC producers like Canada.