Weekly Lubricant Report: Unprecedented Fluctuations By Rising Fears

The crude oil price was reported at $116 on the last day of June and respectively it closed with a decrease in the average price compared to the previous months.

On the 5th day of July, due to the intensification of the fear of stagnation in the market, the price of crude oil decreased by about 8% in one day and reached about $102.

Definitive reports have not yet been announced regarding these 8% reductions, but it seems that the monthly report announcing the amount of interest in the United States as well as the decisions of the G7 group caused this factor.

There are also rumors that Iran and Russia are trying to sell their crude oil at a lower price to China.

On the other hand, reports of the quarantine of another city with the population of 13 million people were published in China, which indicates the re-emergence of Corona in some places.

In addition to this news; the risk of closing some refineries in different countries due to high prices and lack of demand to buy commodities with these prices has been reported, which indicates the threat of supply in the market.

In such a situation where the market has undergone political changes and fundamental news, on June 1st, Bitumen Price in India reduced by $13 and the price of fuel oil by $37. However, the demand for lubricant products in the market is still high.

In Iran, due to the uncertainty of reaching the result in the JCPOA negotiations, the value of the US dollar increased against the rial once again.

In the general situation, the FOB price of recycled base oil in Bandar Abbas is about 970 to 990 dollars, which does not seem logical compared to the price of virgin base oil.

The price of paraffin is about $1300 to $1350 and the price of caustic soda is approximately $680 to $700.

Due to the extreme fundamental changes in the market, it is still suggested that buyers make their purchases according to their orders.

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