Weekly Lubricant Report: Fluctuations Pulling Prices Down

During the last week, compared to the same period of the previous week, crude oil prices fluctuated less and moved in the range of $99 and $107. However, Infinity Galaxy had indicated in its reports that this fluctuation may be between $90 and $110, this range has been maintained until today, and Brent oil sometimes increased to $106 and decreased to $104 by the time of preparing this report.

During the last week, the fluctuations of fuel have decreased to a great extent and fuel was placed in a less volatile range.

So that HSFO 180 was in the range of 482-483 and HSFO 380 in the range of 450-451 on Monday.

In the European Union, after 11 years, the interest rate increased approximately 0.5% and the reason is that the inflation rate increased to about 8.6%, which was estimated to be about 2% in 2021. It is also expected to raise its interest rate again.

At the same time, the parity of the dollar against other international currencies has also increased by a large percentage, which has been more comparing to the past several years

Considering the total conditions, it seems that the price of recycled base oil in Bandar Abbas is increasing due to fluctuations.

The price of Recycled Base Oil has decreased to a great extent and has reached 920 to 930 USD FOB Bandar Abbas. Likewise, regarding the rest of the lubricant products, a price reduction was reported to some extent, such that 3-5% paraffin was reported to be around $1,250 FOB Bandar Abbas. Regarding caustic soda, due to the reactivation of caustic soda factories in China, the price of caustic soda has approached something like 600 to 650 dollars FOB Bandar Abbas.

It seems that the prevailing recession conditions in the world with the inflation that was created before due to the war conditions between Russia and Ukraine have become the factors that the market is largely stagnant and the amount of exports has decreased compared to the same period of the previous years.

In the end, Infinity Galaxy recommends that customers read different analyses when buying any export product so that they do not suffer losses when making a purchase decision.

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