Weekly Lubricant Report: Another Hit of Recession Fear

Over the past week, after OPEC’s decision to cut 2 million barrels of crude oil from the beginning of November, the price of oil rose to $97, but then the price slowly decreased and reached $91 by October 19.

Some experts believe that this drop in crude oil prices is caused by America’s decisions to prevent price increases and increasing dissatisfaction in America and European countries, some of its policies include:

•   Permission to Venezuela to release crude oil
•   Examining the permission to withdraw 10 million barrels from the US strategic reserves (SPR)

On the other hand, this price reduction is due to other reasons such as the inflationary stagnation that has been observed in the world from the beginning of 2022. As the experts of the International Monetary Fund have said, the economic growth of the world has reached its lowest value since 2001; This is due to the stagnation in the world after Corona.

Although the price of bitumen in India increased by 15 dollars and the price of fuel increased by 3.5 dollars, the amount of demand for recycled base oil and lubricant products did not increase significantly. Considering that the Diwali celebration starts next week, many buyers want to move their purchases to the time after the Diwali celebration and the market conditions of that time.

As of Monday, October 17, when the Singapore market opened, fuel had a significant drop of $18, and it seems that the drop in fuel prices over the past week has slowed down a lot.

Currently, the price of recycled base oil FOB Bandar Abbas is 815 to 825 dollars, caustic soda flakes is 720 to 730 dollars, and paraffin wax is 1100 to 1200 dollars. 

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