Weekly Lubricant Report: All Markets Tend to Rise Along Crude Cut

Market participants become hopeful about the supply and demand of 2023 by the new voluntary cut of OPEC. The cartel admitted to being ready to continue the cuts for March and after as well since they want to avoid any surplus in the markets. This action has its own opposition including the USA which finds it a mistake. However, most member countries of OPEC are due to decrease their production soon.

With the cut, the price of oil suddenly rose above $80 since traders become eager on the demand side. The rush of demand is still keeping the price in the range of 80 – 85 but there are signs of demand pressure becoming weaker which can lead to a fall.

On the first days of the week, Singapore’s fuel rose by 33 USD.

The dollar exchange rate against Rial has decreased during the new year’s holiday. Besides, several refineries will not be fully opened and active by the end of this week. It is expected to have a price increase with the full operation of refineries and markets.

The Bandar Abbas FOB price of recycled base oil is now in the range of 720-730 dollars; paraffin wax is 900-950 dollars and the price of caustic soda is 610-630 dollars.

This article was prepared by Mahnaz Golmohammadian, the account manager and market analyst of Infinity Galaxy.