Risks of Another Resurge
Last week’s market was largely confused under the influence of constant determinants. The epidemic of Omicron variants in Europe has resulted in gradual locking in various countries as a result of rapid
outbreaks. However, the mortality rate was not very high. The price of oil fluctuated within the channel from $ 7,276 a barrel.
To be more specific, 4,444 Indian refineries have reduced the price of bitumen to $ 45 per ton, which has not yet affected potential buyer demand. They prefer to buy what they need by the end of 2021. For the past two weeks, Iranian refineries have competed in vacuum beds with a variable margin of 822%.
Perhaps the first and strongest player last week was the completely political factor “US dollar vs. Iranian rial equity.” Frequent fluctuations
allow the market to experience a wide range of prices. According to the latest forecast by the Economist, the United States may lift some oil
sanctions by the end of 2021. If that happens, it will ease the country’s current recession.
In addition to the above, exports declined this year compared to December 2020, but market dynamics and activity trends are upright
due to current market development, potential demand, and relative improvements in transportation services.
On the other hand, base oil prices have settled in Europe, the Middle East,
and Africa this week.
Omicron variants of coronavirus are reducing activity in markets around the world. Many countries are trying to prevent the spread of new species with new restrictions and temporary quarantine. Uncertainty continues to influence consumers’ willingness to buy. Moreover, the recycled base oil and lubricant markets, which are
typically booming during this period, have been stagnant for the third consecutive year.
Commodities Volatility
OPEC has agreed to increase production for many major suppliers in the region. As a result, oil prices have reached stable levels in the last three weeks. According to the analysis, oil prices will fluctuate between $72 and $76 by the
end of 2021. Currently, there are no signs of price increases.
It’s also important to mention that years of nightmarish transportation
problems from buyers and sellers, they announced a court decision
on December 8 to lift the closure of Mundra Port to Iranian cargo. The shipping situation seems to be improving. Respectively, GRI discussions will
continue in mid-January, but shipping costs will improve in the coming weeks.
