Weekly Lubricant Report: The Aftershocks of Global Energy Crisis made a Turbulent Market of the Commodities

While the crude oil price fell about 7-8% on Friday, its price is still above $110 and at the time of preparing this report is at about $111. The exchange rate of the dollar against major currencies has reached its highest level since May 2020, so in the current situation, importers are not sure that with this exchange rate, imports will be very profitable for them.

On the other hand, the stagflation and the fear of recession have caused the decrease in export products. Fear of what will be the next crude oil prices will remain. Market analysis shows that it is almost impossible for crude oil prices to fall below $100 in the short term, but the recession in many countries has left importers skeptical about imports.

The global energy crisis has prompted the United States, for the first time in 3 years, to allow Venezuela to pay off a part of its debt to Europe with crude oil. This crisis in which the United States authorizes the countries that have imposed sanctions on them for the bitumen and oil products export, reflects global fears about future energy prices.

In Iran, the lack of optimism about the JCPOA caused the price of the dollar to remain at its highest historical level, and due to the high demand for Recycled Base Oil from various countries, the situation has arisen that recycled base oil is still at its highest price.

The price of this product is about $970 FOB Bandar Abbas. The Caustic Soda price decreased in East Asia, especially China. Also in Iran over the last week, with the increase of the dollar against the Rial, the caustic soda price decreased and reached below $800 FOB Bandar Abbas. The price of paraffin wax in the current situation is about 1250 to 1300 dollars FOB Bandar Abbas and Calcium Grease is about 910 to 920 dollars FOB Bandar Abbas. In the current situation, Infinity Galaxy still recommends the market players to buy and sell based on the demands.