As the market situation shows, the latest COVID-19 variant, Omicron,
is causing global concern. It has had an impact on people’s lives,
businesses, economies, and so on. Also, not an exception is the commodity market. In fact, the market trend cannot be accurately predicted. As you
might know, lockdowns have been reinstated in a few European countries. Generally speaking, lockdowns are likely to be implemented in more areas. The discovery of vaccines may be the most significant difference between
these lockdowns and previous ones. It’s also important to know that the US
army is about to discover a new type of vaccine that will protect against
all COVID-19 variants. As a result of positive signs of vaccinations, the price of
oil has recovered. If the situation in India and China stabilizes, the market will
rise to higher rates. Moreover, 236 cases of Omicron had been reported
in India as of 6 a.m. on Dec. 23.
Iraqi refineries have delivered a significant amount to Bandar Abbas, and
Iranian refineries are frequently competing to keep rates from falling. The percentage of people who competed the following week ranged from seven
to 26 percent. By the first of January 2022, Indian refineries are
expected to reduce the price of bitumen by around 40 dollars. Few buyers,
on the other hand, have canceled their orders. This indicates that
current market rates are still appealing to buyers.
On the other hand, Iran IME reduced vacuum bottom prices by 2.35 percent
on December 22, 2021, which is insignificant when compared to refinery
weekly competitions. It demonstrates that both sellers and buyers do
not believe rates will continue to fall. According to recent reports,
shipping lines will implement a new wave of GRI on January 2, 2022. Despite claims that the Adani terminal has resolved the issue of cargo import from
Iranian ports, the issue remains unresolved, and shipping lines are reluctant
to release bookings. It is possible that the destination of your reservation will change.
The market is currently hesitant: on the one hand, falling rates for
Omicron pressure and market instability. On the other hand, rising rates
due to current dynamic demand and hopes of controlling Omicron through vaccination. However, based on COVID-19’s previous two-year experience,
rates may reach a bottom, followed by a significant increase.
Crude oil prices have fluctuated between $70 and $76 in the final days of 2021. It appears that the price range for 2021 will remain the same. Transactions of
base oil and recycled base oil are slower than they were at this time
last year and in the first half of this year. Some of the reasons are as follows:
Due to the resumption of production at several factories, base oil grades
are now more readily available than they were in the middle of the year.
With the resurgence of Omicron in many countries, there is uncertainty
about the Corona pandemic. Lower demand for fuel and lubricants as
a result of the possibility of new restrictions and quieter activities. Generally speaking, about 200 cases of Omicron have been reported in India. At this time, the situation does not appear to be out of government control.
It’s needless to mention that if people follow the protocols, there’s a good
chance they’ll be able to control Omicron and the market will return to normal. After several months of poor performance, lubricant consumption in
India has stabilized. The country is showing signs of economic recovery. Because of the abundance of imports and the consistent supply from domestic manufacturers, Indian buyers have been able to take a more
relaxed approach without feeling compelled to accept the first offer.
This article was prepared by Shirin Yosefi, the Content specialist and market analyst of Infinity Galaxy.