Weekly Lubricant Report: Petroleum Products On the Way Up

On Monday, the price of Brent oil started at around 97 dollars, and at the end of Monday, the price of Persian Gulf and Singapore fuel reached its highest value during the last quarter with an increase of 10 dollars. 

The increase in oil prices reached 98 dollars and after that, with the high price of oil in the range of 96 to 98 dollars, many players in the market of petroleum and petrochemical products sought to book the goods.

Some analysts believe that the increase in the price of oil and fuel products was due to the proximity of the November 8th American election and its influence. Until this report is prepared, it seems that the Republicans have taken the upper hand from the Democrats in many states, and in this way, it will be difficult for the Democratic Party for the remaining two years of Biden’s presidency. Whether or not oil prices will remain above $97 after the Republican election is still unclear.

The prevention of strict zero-covid policies in China also caused more requests to flow from China to exporting countries this week. On the other hand, the increase of bitumen and petroleum products in India and the increase of oil in fuel and Singapore caused more demand to be sent to Iran as one of the suppliers.

Within the last week, with the 10% devaluation of the rial against the dollar, many competitions for the purchase of goods and raw materials have been registered in IME, in such a way that even the purchase of bitumen raw materials is sometimes up to 95% of the base price.

In the current situation, due to the sale of caustic soda in many manufacturers in Iran, the delivery of caustic soda has reached more than 40 days and the price of caustic soda flakes FOB Bandar Abbas is about 760 to 770 dollars. The price of recycled base oil is 800 to 810 dollars and paraffin is offered at 1100 to 1150 dollars.

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