Weekly Lubricant and Base Oil Report: Stagnation and Calm Conditions of the Recycled Base Oil Market

Crude Oil prices have fluctuated between $108 and $113 over the last week, up slightly from the previous week. On the other hand, market analysts are not very sure that this growth will continue, and it is assumed that the crude oil price will fluctuate approximately $105 to $115.

Singapore furnace oil prices decreased nearly $40, rising again to about $50 within two days. In 15th May, , India increased its bitumen price by $3, and its furnace oil price fell by approximately $11.Bahrain also reduced its bitumen price by about $20 during this time and in the latest update, its price remained stable.

Also, shipping companies announced the cost of BAF for June 1, which they want to increase the freights, which will be around $140 for flexi, which will increase the cost of exported commodities in different destinations.

Russia-Ukraine war has reached its 86th day as Russia continues to launch a heavy attack on Ukraine from the east. Ukrainians refuse to accept peace, and concerns are spreading about how this war will affect different regions of Europe.

In the last reports, Infinity Galaxy announced that the sanctions on Russia would change the supply chain of some petroleum products. Russia has signed long-term contracts with China and India for the delivery of crude oil. Also, it has entered the base oil market. The rest of the markets are also trying to bring different lubricants to different countries with a lot of negative competition. The result of this is that we cannot confidently predict the future of the market.

China announced that it will lift the Shanghai lockdown, but some other Chinese cities have also imposed lockdowns. It is hoped that Shanghai will return to the export cycle and the export movement will accelerate.

In the current situation, the price of recycled base oil, similar to the last two weeks, has not decreased. It is in the range $820 and $835.

The price of paraffin wax is between $1300 and $1400 and the price of caustic soda is at the peak price of $800 to $850 with the delivery term FOB Bandar Abbas.

India’s bitumen prices are expected to drop on June 1, but nothing has been said about fuel yet.

Iran and other countries are experiencing stagflation, which has reduced the purchasing power of many business owners and businessmen. The volume of exchanges has decreased significantly compared to the same period last year.

This confusion in the market, which is evident among the market players, has also caused confusion among buyers. Furthermore, buyers do not publicly know whether they are making the right purchase at the right time.

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