Chaos Continues to Confuse Traders

In some parts of Europe, the Middle East, and Africa, demand is strong for base oil, while it is slowing down in some other countries as usual at this time of year.

In recent weeks, oil was fluctuating between $80 – $85. This could be due to declining demand and the need to reduce inventories before December 31st for the financial year-end.

Transportation and mobility have increased the demand for lubricants and fuels. Therefore, several refineries have increased fuel production and reduced base oil.

After the Diwali holiday, there is a demand for base oils and recycled base oils in India.

Buyers faced logistical disruptions and increased shipping freight charges, which have affected container and bulk shipments over the past few months. One of the recent troubles has been the reluctance of shipping lines to carry cargoes to Mundra port.

The sharp rise in bitumen prices in recent weeks and the $13 drop in Furnace Oil in India have also silenced the market, especially in India.

In general, the recent events in the market of base oils, lubricant and recycled base oil, such as many other markets, have caused some traders to hurry and others to stop.