Expectations for a Rise of Recycled oil After the Sudden Reduction

The price of base oil and lubricant has been steady in the last week, unlike expectations. Meanwhile, oil prices continue to rise sharply. This increase in oil prices will also increase the initial costs of producing base oil. Oil prices are expected to rise by the end of 2021.

The OPEC agreement on the previous production level, the refusal to accept a further increase in production, and the sharp rise in gas prices confirm this expectation.

While some experts predict that prices will soar again, some believe that prices will stabilize at their current level by the end of 2021.

The recycled oil market has experienced a sharp drop in price over the past week, which can be attributed to New rules and restrictions on the import of recycled oil and some grades in Indian ports and reduce their imports

This price reduction has caused buyers to stop spot purchases and wait for a temporary reduction in prices.

However, despite the festivals and religious ceremonies of the last months of the year, one should expect an increase in the consumption of lubricants, recycled oil, and base oils. This increase in demand, along with the oil price rally, could have a significant impact on rising prices.

In the paraffin and slack wax market and some lubricants, production restrictions and shortages of raw materials are still observed. Recent reports show that small shipments of RPO have been exported from Bandar Abbas to India.

Shipping problems are decreasing. We expect to see the situation stabilize and improve in the coming weeks due to the drastic changes in shipping prices and many problems in maritime transport programs.

This article was prepared by Tina Taghavi, the account manager of Infinity Galaxy (www.infinitygalaxy.org).