Global oil prices have skyrocketed this week on the back of western sanctions against Russia, with benchmark Brent crude breaking over USD113 per barrel, its highest level since June 2014. Despite Russia's invasion of Ukraine hurting global edible oil supply, industry leaders warned on Thursday that the world's largest white oil users, China, and India, are delaying imports as prices increase to historic highs. China needs immediate replenishment of its vegetable oil supplies. The demand is strong, but the high prices have deterred potential buyers. Extreme volatility in crude oil prices has also led to white oil fundamentals inflation. In the first week of March, oil prices rose by 1.5-2%. White Oil Technical grade CFR Shenzhen prices in the week ending 4th march were assessed at USD 1195/MT.

Malaysia and Indonesia are the world's largest exporters and producers of white oil. Their domiciliary white oil status will have an impact on the worldwide white oil pattern. White oil prices are now being influenced by the relevant scenario in both countries. Domestic oil and fat inventories have remained low and changing the tight supply pattern are challenging. The market will form a boost in the short term. If import growth will be constantly insignificant in the future, the situation may be sustained.

White oil is an odourless and colourless liquid derived from petroleum distillate. It is available in several viscosity grades, including 50/60, 65/75, 80/90, 200/215, and 340/365. White oil is used in variety of industries, including cosmetics, pharmaceuticals, food, and industrial solutions. It is also widely used as an insecticide spray to control pests like aphids, mites, caterpillars, mealybugs, scale, citrus leaf miners, and others.

As per ChemAnalyst, “White oil is easy to rise in the near term due to a mix of important fundamentals and policy conditions in the world's major white oil-producing countries, as well as the impact of key domestic fundamentals, because of the situation in Russia and Ukraine promoting prices. It's difficult to fall, and there's still room for growth.”