As the reports show, the base oil and lubricant markets were uncertain
last week due to an infection with a new corona variant called Omicron. Many countries have closed their borders and imposed travel bans to curb the
spread of mutated viruses. This situation and the decision to increase OPEC +’s supply have affected the prices of crude oil and refined products in recent weeks. In fact, they have partially eliminated the pressure to raise the
price of base oil raw materials. Oil prices have reached about $75 in the last few days, but there is no price turning point in current market conditions. Oil prices could stay on the $ 6,970 channel.
Respectively, in the last few days of 2021, the market stopped again.
Many refiners and importers sell locally to clear inventory. Due to restricted population migration, new restrictions and quarantine may
reduce the demand for fuels and lubricants. Therefore, refineries may lower prices. The price of recycled base oil fell by about $2030 last week.
Moreover, transportation problems are currently putting a heavy burden on the global market. It had a great impact on the trade between the
Middle East and Bandar Abbas. This delays shipment, leaving many cargoes in various ports, waiting for them to ship for several months. On the other
hand, demand is increasing in Southwest Asia and some African countries.
In contrast, in some Indian countries, demand has stagnated as Adani’s decision has made it difficult to move new Covid and cargo to India.
Markets are generally inflamed because there is no final prediction of oil prices.
To sum up, investing in the current market seems to be a gigantic risk. Buyers should pay more attention to spot purchases and not invest at this time.
This article was prepared by Shirin Yosefi, the Content specialist and market analyst of Infinity Galaxy