Mumbai, India: The C10 Solvent pricing has been soaring across the Asia-Pacific region with skyrocketing upstream Crude oil value in the international market. Ever since China recovered from the worst Covid outbreak, its demand for Crude has inclined to record heights. As a result, Saudi Arabia wanting to benefit from the situation has raised its official selling price for Asia, which is its primary market.

Earlier this week, Crude oil prices soared when Saudi Arabia declared that it would increase crude oil prices for most regions, excluding the United States. On Wednesday, the global benchmark, Brent crude futures, rose over 2.6 per cent to hover at USD 124 per barrel, while the West Texas Intermediate (WTI) crude inclined around 2.4 per cent to trade beyond USD 122 per barrel.

Recently, Saudi Aramco stated a net profit of USD 39 billion for Q1 of 2022, owing to upraised crude oil costs. This profit accounts for an 82 per cent annual expansion and a record quarterly profit. In addition, Goldman Sachs, in an interview, quoted that oil could hit USD 140/barrel in the forthcoming period. However, Saudi Arabia and OPEC+ agreed to increase monthly output by approximately 650,000 barrels per day combined net month and in August, up from an initial agreement of 432,000 barrels per day.

With all the uncertainties around the world, the regional C10 Solvent traders remained under inflationary pressure. Increased raw material costs coupled with mounting shipping charges compelled the manufacturers to raise their offers for C10 Solvent lines to sustain their margins. According to the ChemAnalyst Database, the Ex-Mumbai discussions jumped by approximately 2 per cent for the month of June. In the meantime, the overall demand from the downstream solvent industry remained stable as per our sources.

The market dynamics of C10 Solvent in Asia are expected to showcase bullishness in the coming weeks on the back of a strong upstream market. The manufacturers will likely remain under inflationary pressure with escalated raw material prices. With increasing supply-side concerns, the terminal users might face product scarcity across the domestic as well as regional market, as per ChemAnalyst.