Weekly Lubricant Report: Erratic Base Oil Prices in the Middle East

With the beginning of the Chinese New Year in East Asia (Lunar New Year), orders from East Asia stopped. During the last week, despite the market’s expectation of an increase in crude oil prices, it could not cross the $87.

As reported on Monday in the Infinity Galaxy oil report, a strong resistance has been placed on the $90, and the possibility that the crude price crosses this point is low.

The spread of Corona, the increase in the number of people infected with Corona in China along with the Chinese New Year holidays, may lead to a new disaster and the market may face a new shock, but no specific comments have been made about it at the moment.

During the last week, many inquiries to buy recycled base oil from different countries such as India have reached Iran, and this has caused the price of recycled base oil to increase, despite the unprecedented increase in the parity of the dollar against the rial.

Also, the raw materials for the production of recycled base oil in Iran are scarce. The price of virgin base oil has increased again.

In the current situation, the price of recycled base oil is about 730 to 740 dollars (FOB Bandar Abbas), the price of Caustic soda is 600 to 610 dollars (FOB Bandar Abbas) , and the price of paraffin wax is 950 to 1000 dollars (FOB Bandar Abbas).

Iranian base oil prices at present are unstable. FOB Bandar Abbas Iran exports prices at present are quoted for SN -150 (USD 905 – 935), SN -500/650 (USD 965- 980).

The domestic market for base oil in Singapore follows the global trend and treads delicately.

In the domestic market prices for Group I at the current level are hovering in the region of SN- 150 (USD 935- 965),SN -500 (USD 1045-1080),Bright Stock (USD 1250-1295) MT.

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