Unprecedented USD Fall amid Pandemic Led to a Disoriented Market

The growth in base oil prices throughout Europe, the Middle East, and Africa slowed down in the past couple of weeks, but there are a few signs of descending pressure.

While feedstocks for base oils are constrained, refineries are operating at diminished rates because of the lower demand for fuels.

Raw material prices have fallen in recent weeks due to lockdowns and the waning demand from India. Accordingly, the price of recycled oil has been driven lower, though, there is still demand from East Asia, Turkey, and Africa

Brent crude futures jumped to $69.46 and U.S. West Texas Intermediate (WTI) crude futures leapt to $66.29 a barrel.

There are some rumors in the markets that crude oil prices may get a further boost. Some expect the oil to touch around $75 due to the recovery of global economies.

Moreover, the higher possibility of Iran-US negotiations has affected the market more than anything these days. The USD rate has fallen sharply in Iran and its downward trend continues which has led to an unprecedented rise in oil products prices.

After the sharp rise in prices, many markets have stalled until the situation is clarified. However, it seems that the price of recycled base oil is still attractive. Due to the recent drop, there is still demand for base oil.

There is no definite prognosis for the coming weeks because of the uncertainty of the Indian market, the sharp fall of the USD, and the sudden rise of prices.

The Infinity Galaxy analysis team is trying to assess the situation and publish instant news to inform our valued customers.