Weekly Lubricant Report: Recycled Base Oil Prices React to Shifting Economic Conditions

After OPEC reduced 1.6 million barrels of oil and increased the price of Brent oil to $80, the price is still at the channel $80. It has recorded its increase of 13 dollars for the last two days. 

Despite the concerns of the reoccurrence of economic recession similar to 2008, yesterday one of the managers of the US Federal Reserve announced that the possibility of reducing the interest rate and returning it to the pre-corona and economic stability in the US has increased. 

This optimism about the change of conditions to the normal state of the conditions before Corona in 2019 has caused an increase in optimism about the improvement of the economic situation in America and Europe.

But this comment cannot be confirmed or denied yet. 

Despite the above, the level of requests from China has not increased and it seems that the economic components in China have not returned to the conditions before the outbreak of Corona. 

In the Middle East and in Iran, after the unprecedented record of the parity of the dollar against the rial, in March 2023, this parity decreased in April, and this decrease in recent days caused the price of all petroleum products to grow significantly. During the purchase and sale of petroleum products since the beginning of the solar year in Iran until now, there has been about 80% competition for the purchase of these commodities, the last case of which was recorded yesterday, nearly 106% competition for the purchase of vacuum bottoms in Iran.

All these conditions have caused oil products in Iran to record high prices.

In the current situation, the price of recycled base oil Fob Bandar Abbas is about $730-745, paraffin wax is about $900-950 and caustic soda is about $600-620.

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