Weekly Lubricant Report: Market under the Severe Cold in Iran

In the last days of January 2023, as stated in the Infinity Galaxy crude oil analysis on Monday, oil tried twice to cross the $88 and reach $90, but it was unsuccessful both times and it has returned to the bottom. Finally, it stopped in the range of $85-$86.

It seems that the recession predicted for 2023 and global inflation have made the price of oil unable to continue growing. On the other hand, we have to wait for the decisions of the first meeting of OPEC in February 2023. This oil cartel of the world adheres to reducing the production quota in order to keep the price in the current range.

According to Fanack, On 31 January, China began taking steps to reopen its economy following the implementation of a gradual lifting of restrictions put in place as part of its “Zero COVID” policy. 

The decision is in response to the significant economic pressures caused by the strict policy, as well as widespread labor and popular protests calling for an end to the restrictions on movement and economic activity.

On the health level, the decision to reopen the Chinese economy raises concerns about the potential emergence of new variants of the virus, given the recent outbreak. However, economists have expressed optimism about the economic impact of these developments, which they believe will boost global economic growth in 2023.

During the last week, due to the severe cold in Iran, many export activities were disrupted, and on the other hand, the lack of raw materials for the production of some products, such as recycled base oil, caused the price of this product to increase. Also, on February 1, India reduced the price of bitumen by $15 and increased the price of fuel by $21.

Despite the unprecedented increase of the dollar against the rial, the prices increased due to the increase in production and export costs.

Currently, the price of products based on the FOB Bandar Abbas is as follows:

• Recycle base oil: 730-740 USD
• Caustic soda flake: 660-680 USD
• Paraffin wax: 950 to 1000 USD