Market Transformation amid Political Games

While in recent weeks the market has been in a state of turmoil and confusion, the inevitable growth in prices is becoming more obvious after the market events and Iran’s political situation.

Many factors are affecting the growth of the market, among which the following can be mentioned:

• Rapid market changes due to political developments in Iran and the lifting of sanctions are some of the factors that influenced the trading scheme. In the process of Iran-US negotiations, the United States has agreed to lift 95% of sanctions imposed during Trump’s presidency. This will generate serious changes in the shape of markets.
• With the approach of the Iranian elections, the value of the Iranian national currency is increasing. It intensifies the USD’s downward trend in the current situation. Some Predictions indicate that the value of USD might fall to 15,000 Toman which will cause serious growth in prices.
• In the past few weeks, the Indian market experienced a steep incline because of the economic impact of restrictions, the absence of employees at certain manufacturing operations, and diminished transportation. The news indicates that India Lockdowns will end on May 15 and a large volume of lubricants, base oil, and recycled oil demand is expected to enter the Iranian market.
• As the Infinity Galaxy reported on Monday, oil prices are still surging and predictions for a rise to $75 have been strengthened.

The above mentioned are some of the market circumstances that had a noticeable impact on market prices and the trading process. FOB prices of recycled base Oil , which were slightly stable around 650$ to 670$, are increasing again.

The shortage of supply issue, mentioned in the last weekly report, remains strong. Many refineries stopped working due to price growth and market fluctuations. They have decided to halt production until the situation becomes clear.

Although many factors indicate certain growth of prices, increasing demand, and transformation of the market, it is not clearly stated how traders and importers want to adjust to the new conditions. Many importers have registered their orders quickly before the sharp increases, while some prefer to wait for the conditions to be determined and set.

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