White Oil Prices Progress to Conclude the Fourth Quarter of 2022 With a Bearish Note
- 26-Dec-2022 4:33 PM
- Journalist: Timothy Greene
Texas, USA- Since the mid of December 2022, White Oil's price has been gradually decreasing in regional markets. The Baltic and International Maritime Council (BIMCO) reported that orders had been steadily slumping. As a result, annual global container volume declines of 9.3% have led to overcapacity. The pressure on the containers has been eased and resulted in a reduction in freight rates for various commodities, including White Oil.
On the upstream price front, due to the extreme cold, a number of the largest U.S. refineries had to shut down, and production was also suspended in Texas and North Dakota, driving the Crude Oil prices on the firmer side in the U.S. market. However, the stock willingness from the downstream White Oil manufacturers has been sluggish, and the market progressed with a contrary trend to its upstream Crude Oil. Further reported, the pace of transactions from the downstream personal care sector has been on the slower side, which has caused the price of White Oil to fluctuate with small price changes every week. The ChemAnalyst database has shown that White Oil cosmetic grade CFR Texas prices were settled at USD 2340 per ton on 23rd December 2022.
Furthermore, the fresh spikes in COVID cases in China have started to impact manufacturing activities on broader levels. The procurement of White Oil from the end-use industries was limited, prompting the traders to slightly reduce their offers and increase the shipments amid the destocking season. The operating rates were regular, and the supply of White Oil was adequate in the domestic Chinese market.
According to ChemAnalyst, the prices of White Oil might sustain their downward trajectory in the near term. The uncertainties in the upstream Crude Oil prices and the dented demand from the downstream personal care sector are likely to be the key variables pressuring the pricing dynamics of White Oil in the forthcoming weeks. In addition, the resurgence of COVID-19 cases is anticipated to strictly containment approaches, limiting trade activities across the regional markets.
