Gas Oil

Gas oil assumes 29% of global oil product demand. Used for diesel for transport, power generation and industrial use. Gas oil is a product of crude oil and is used for heating purposes and for generating power. Gas oil accounts for about 25% of the yield from a barrel of crude oil. This represents the second largest “cut” after petrol. Gas oil is traded widely in Europe as a hedging tool for the physical industry. Trading for gas oil futures contracts is conducted on the Intercontinental Exchange (ICE) and New York Mercantile Exchange (NYMEX).Gas oil prices typically move in sync with that of crude oil.

Primarily used in the transportation sector., used as fuel in jet aircraft, used in other jet turbine application. Jet fuel is one of the major petroleum products produced from processing crude oil in a petroleum refinery and is one of the higher-valued light products (along with gasoline and diesel). The same material used to make jet fuel is also sold as the product kerosene for non-aircraft uses, but with lower quality specifications.

Consequently, jet fuel can be a swing fuel, stealing volume from gasoline and diesel when jet fuel prices are high, and contributing volume when jet fuel prices are low. Jet fuel is typically a simple blend of a few different kerosene streams.