Weekly Lubricant Report: Feedstock Shortage Drove the Lubricant Price Growth

During the last week, the price of crude oil reached nearly $85 and the possibility of its increase up to the range of $90 can be seen.

Although Russia announced that it is going to cut production by 500,000 BPD, this news could not have a serious positive impact on crude oil prices, and it is still at $85.

The Singapore fuel price was able to grow by about $41 during the last week. It seems that the average price of oil in February is in a better condition compared to January. This has made the forecast for export conditions to be better.

In the current situation, due to the severe cold season in Iran, the situation of logistics and raw materials for the production of recycled base oil has decreased, and this has caused the price of recycled base oil to increase in Iran.

Due to the implementation of GRI in the Persian Gulf, the price of shipping has not been able to grow significantly, and this indicates a decrease in the average export of the last two months of 2023 compared to the same period of the previous year.

In the current situation, the price of recycled base oil  Fob Bandar Abbas is $740-$750, paraffin wax is $900-$950 and caustic soda is priced at $670-$700.

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