Weekly Lubricant Report: Recycled and Base Oil are Affected by Crude

The Fed is slowing the pace of increasing the interest rates by 0.25 points. This can be a sign that the Fed believes the inflation is a bit tamed. The ECB and UK also increased the interest rates last week causing crude oil to fall on Thursday and Friday.

From Monday, December 19 to today, Wednesday, December 21; Brent oil has not been able to rise and has been fluctuating between $78 and $81. There have been no important political events that affect the market, and it seems that the markets are preparing for the holidays.

China is struggling with covid again. On one hand, zero covid protests are troubling the government; therefore, they decided to loosen the restrictions. On the other hand, lower restriction regarding covid is increasing the virus’s spread. It is possible for many to die due to the infection. However, reports are taking China’s demand on a growing trend for 2023.

In the current situation, the FOB  Bandar Abbas price of recycled base oil is $750 to $760, paraffin wax is in the range $950 to $1050, and caustic soda is $810 to $820.

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