The Wild Beginning of February Along with a Sharp Rise of Rates

February, as predicted in previous reports, started with a sharp rise in oil prices.

Markets of base oils and lubricants faced many issues during last week:

• Supply chain problems with increasing Omicron cases
• Reduction of labor and raw materials
• Political tensions in different parts of the world
• A sharp and unprecedented increase in crude oil prices
• Uncertainties related to the beginning of the Lunar New Year

All the above factors increased the base oils and lubricants prices in the last week.

Recycled base oils and lubricants demand has dropped in countries such as China, Singapore, Vietnam, South Korea, Malaysia, Taiwan Demand due to the New Year holidays. Buyers are waiting for the end of the holidays to return to the market. However, after the sharp price rise of the market at the beginning of February, several buyers from other countries rushed into the market of base oils and lubricants to fix their orders at more reasonable prices.

Political tensions between Russia and Ukraine, along with energy supply concerns, have led to an unprecedented rise in crude oil prices. The price of crude oil has reached $ 90 for the first time since October 2014.

Generally, the upward trend of the market, in the last week, has increased the demand and willingness to purchase.