Weekly Lubricant & Chemical Report: Mixed Signals Rushing to Markets

During the last week, after Russia cut the Nord Stream 1 pipeline to Europe and announced in the last political positions that until Europe does not remove the sanctions, Russia will not open the pipeline either, as a result the oil and gas conditions have entered a new stage in the world. 

Europeans claim that they have enough gas resources to get through the next winter, on the other hand, it is not clear whether this claim can be true for a few days and whether it can fuel the energy crisis in the world or not. 

On the other hand, in Monday’s meeting, OPEC decided to reduce its 100,000 barrels of oil. But many of these decisions are political, they are only considered to control the price of oil by OPEC. 

However, the price of oil reached 95 dollars by the time of preparing this report, and the forecast indicates that the technical trend of oil is probably still increasing, but whether oil can cross the 100 dollar mark again is still questionable. In Iran, the conditions of the JCPOA and the nuclear agreement have become somewhat complicated and it is not clear whether the parties will reach an agreement at this stage or not, and this has caused the rial to devalue again against the dollar.

On the other hand, a series of production factors such as raw materials are still the main problem for many producers in Iran, and it is expected that after the end of the monsoon and the start of the season, the demand for various commodities, including recycled base oil will continue. 

The weakening of the dollar against Some valid currencies and the equalization of each dollar against each euro will be a factor in increasing the price of oil in the coming days, and on the other hand, the complex conditions of inflation in developed countries, especially America, also indicate that it may again The Russian Federation should also increase the interest rate to America.

At present, recycled base oil for Bandar Abbas is about $825, paraffin wax is $1,250 to $1,300, and FOB Bandar Abbas caustic soda flake is $610 to $620.

In the current situation of the market, it is recommended that importers decide to buy goods based on their demand, and the conditions are not such that they can make long-term or large investments for the product.

China Caustic Soda Market Condition

The liquid caustic soda market is mainly weak and the customers of high-level alkali are not very motivated to receive commodities. The price of main factories in Shandong has been reduced and it is difficult for manufacturers to increase their quotations. 

With the gradual recovery of power rationing devices in Hebei and Southwest China, the outflow of goods in North China has been significantly reduced, and the inventory has increased, which has a negative impact on market prices. 

This article was prepared by Mozhdeh Darbandizadeh, the account manager of Infinity Galaxy (www.infinitygalaxy.org).