Imbalance of Supply-Demand Cycle due to the Shortage of VB and Fall of USD against Rial

This article was prepared by Razieh Gilani, the sales manager of Infinity Galaxy

By approaching the official commencement of Joe Biden’s presidency, Iran currency market followed a decreasing path and it is expected to be continuous for the next days with the hope return to JCPOA.

On the other hand, the considerable imbalance of supply and demand due to shortage of vacuum bottom led to significant competitions among the refineries as the available VB is planned to be used in mazut production.

The environmental considerations of the Democrats in the USA will lead to the reduction of Shale oil (that could open doors for West African crudes in Asia- Pacific and Europe) and the implicit agreements of Russia and Saudi Arabia to cut down the oil production were two remarkable factors that led to the jumps of oil price during the week that was observed in most of the markets including China.

A new wave of container shortage is coming from the side of shipping lines and fluctuation of freight charges is another challenge of the exporters in determining the best competitive prices to the buyers.

On the whole, based on all abovementioned facts, it can be concluded that the market will meet continue its increasing trend in the future.