As mentioned in the Friday bitumen report of Ms. Razieh Gilani, hard choices are now on the table of the economy in different countries, whether they should deal with hyperinflation in their country or choose stagnation.
Since last Tuesday, 5th July 2022, when the news about the increase in interest rates in the United States was heard, the price of crude oil decreased 9% and reached from $113 to $103.
Although the Federal Reserve did not raise the interest rate last Friday, it seems that the United States plans to raise the interest rate again in July.
This fear in the market made the euro and dollar rates equal on July 12, after 22 years. Also, the dollar became very strong against the rupee and other world currencies.
These conditions make importers worried whether they can import a product and sell it compared to their domestic products or not.
As we stated in Monday’s bitumen market vodcast, if the crude oil price succeeds in passing the resistance around $107, which is a very strong zone, it can stay above. Otherwise, the price can fall to its support at around $90.
These conditions, along with the severe inflation that the world has experienced, and the resurgence of the corona virus in the world, are all factors against international trade.
In the current situation, a lot of fear has been created in the commodity and international markets in the world.
In the current situation, considering the events mentioned above and the price of crude oil which is below 100 dollars, recycled base oil of Bandar Abbas is about 950 to 970 dollars, caustic soda price is around 700-720 dollars and paraffin wax is around 1250-1300 dollars.
Since discussion of recession is the most important current factor in the world economy, other factors were not so important compared to the recession that we want to explain. Therefore, we only examined this issue.
Due to the fact that the situation is still unclear, Infinity Galaxy advises not to invest seriously in petrochemical products unless there is a clear demand for the product.
This article was prepared by Mozhdeh Darbandizadeh, the account manager of Infinity Galaxy (www.infinirtgalaxy.org).
The post Weekly Lubricant Report: The Fears of International Trade appeared first on Infinity Galaxy.
