Weekly Lubricant Report: Inflation Halts Price Decrease Despite Market Fluctuations

On Monday, crude oil opened around 85 dollars, and two scenarios of an increase up to 90 dollars and a decrease of 82-84 dollars have been imagined so far.

Singapore’s fuel condition has improved since Monday. Biden’s visit to Ukraine on the eve of the one-year anniversary of the Ukraine war demonstrates the full support of the West for Ukraine and its desire for victory. However, it is still unclear how it will affect the economy.

 The US Federal Reserve is still hawkish about increasing interest rates. It is unlikely that the increase will fall below 25 points in 2023. They are trying to restrain inflation sooner. 

US oil inventories also added to the bearish sentiment in the market last week.

The unprecedented increase in the dollar to rial exchange rate has not resulted in a decrease in prices. As this increase exceeds normal limits, it affects the cost of all production activities, transportation, logistics, as well as all internal processes. 

A state of uncertainty is currently prevailing in the market, in contrast to the usual increase in exports in February every year.

The FOB Bandar Abbas price of recycled base oil is 740-750 USD, paraffin wax is 950-1000 USD and caustic soda is in the range 660-670 USD.

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