A method for desulfurizing a hydrocarbon stream (10) containing heterocyclic sulfur compounds, which process comprises contacting the heterocyclic sulfur compounds in the gas phase (60) in the presence of oxygen (70) with a supported metal oxide catalyst, or with a bulk metal oxide catalyst (600) to convert at least a portion of the heterocyclic sulfur compounds to oxygenated products as well as sulfur-deficient hydrocarbons and separately recovering the oxygenated products separately from a hydrocarbon stream with substantially reduced sulfur.