Weekly Lubricant Report: Lubricant Products Demand Reduction

While the 10th month of Russia’s war against Ukraine is passing, the new statements of Ukrainian President Zelensky indicate that this war will probably last more than a year and will probably continue in 2023. 

What conditions this situation and Russia’s actions will determine for the global economy is not yet clear. However, after Russian statements regarding the fact that the Russian authorities will not comply with the price cap, new news has been published by Bloomberg, which shows that Russia is selling its oil more than its commitment to OPEC . Russian oil is sold between 40 and 50 dollars on international markets with special discounts to its customers.

After the drop in the price of Brent oil to the $70 channel since Monday, it was not able to leave the $70 channel, and the maximum price recorded for it was $80 for several hours and then returned to below $80.

The conditions have resulted in a significant reduction in the amount of petroleum products exported during the export season.

Following the visit of Chinese President Xi Jingping to Saudi Arabia and the conclusion of 34 different agreements in the oil and energy field; the level of the oil contracts and their international impact are unclear.

In the current situation, the FOB  Bandar Abbas price of recycled base oil is $780 to $790, paraffin wax is in the range $950 to $1000, and caustic soda is $820 to $830.

According to the market conditions, it is recommended to investigate the market fluctuations and trends before finalizing the order.

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