Tumbling oil prices may ease the C10 solvent price trend

The futures of C10 solvent may improve with the falling oil prices in Asia. The United States administration considered announcing 1 million barrels of crude oil per day from their Strategic Petroleum Reserve (SPR).

According to the ChemAnalyst data, the Asian C10 solvent market experienced a record hike this month, about 11%, compared to February in India. The driving factor is the immense supply disruptions globally tempered with soaring crude oil prices and heightened volatility stoking inflationary concerns amid the geopolitical tension between Russia and Ukraine. However, the sky-high prices did not last long. On Friday, West Texas Intermediate futures, the United States oil benchmark, dropped nearly USD 6 per barrel, or approximately 6 percent, to USD 99.86 per barrel. At the same time, the benchmark Brent crude futures were down more than 8%, with volatility reflected in the trading price, which hovered around USD 103.5 per barrel.

On the other hand, the world’s largest oil importer China is battling its worst outbreak of Covid-19 since the pandemic began. The recent lockdown in the Chinese metropolis of Shanghai to curb the covid spread has slowed down the demand fundamentals. A key player in India, Asian Paints Ltd., has witnessed a declining trade activity this month. The other affected downstream paint manufacturers in the Asian market include Kansai Paints Co., Ltd., and Nippon Paint Holdings Co., Ltd.

As per ChemAnalyst,” The prices of C10 solvent may stay buoyed in Asia despite the Crude futures continue to rally downwards. Increasing construction activities, growth in the furniture market, and diversification of oil and other industries in Asia might be the driving factors for the C10 solvent prices. Additionally, increasing awareness of energy conservation will also boost the demand for coatings in the various sectors where insulation or coating is mandatory.”