Remarkable Augmentation in India’s Fuel and Petroleum Market

Markets have been volatile in recent weeks as crude oil prices have risen to around $135 sharply.

However, in the last few days, there was a collapse to around $101 and even slipped below $100 in a few hours of Tuesday, March 15th.

This downward trend doesn’t seem to have an analytical foundation and seems to have occurred only based on technical trends.

Recent news of conflict over Ukraine joining NATO has lifted customer expectations for price adjustments.

However, not only because of advancing crude oil and feedstock rates but also because of the sudden decline in supply and existing market transformations, prices do not seem to be plunging much at the moment.

The cost of flexi tanks shipments to India and East Asian ports has also increased unpleasantly, pushing the import-export costs further.

While seasonal increases were seen in some markets, such as China and India, they have increased fuel and oil products price by nearly $110 on March 15, 2022, which is the most unprecedented boost in India’s market.

Oil prices are still estimated at over 100 dollars. It is likely that Iran increases the price level of its petroleum products up to $20 – $50 in the next 5 days.

Due to the approaching end of the solar year and starting holidays in some countries, the uncertainty over the oil price situation, and the war in Ukraine, there is no accurate picture of the future market situation.

Conflicting reports of Iran’s nuclear deal Over the past few weeks has made the situation of USD against IRR unstable which raises concerns in the market.

In the current circumstances, caustic soda flake FOB Bandar Abbas is around $880 and the price of recycled base oil FOB Bandar Abbas has exceeded $720.

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