White Oil Prices Demonstrate Mixed Trends in the First Quarter of 2023
- 19-May-2023 5:31 PM
- Journalist: Xiang Hong
The global White Oil market experienced a mixed performance in the first quarter of 2023 due to fluctuating cost support from upstream crude oil and a combination of weak demand and geopolitical factors. This led to oscillating commodity prices across different markets in the world.
In North America, market discussions of White Oil steadily declined due to uncertain economic conditions. The collapse of three banks- Silico Valley Bank, Signature Bank, and First Republic Bank along with the looming pressure of an interest rate hike, further worsened business sentiments in the region, causing consumers to adopt a wait-and-see approach.
The market prices of Cosmetic Grade White Oil CFR Texas started at USD 2270 per tonne in January 2023 but dropped significantly by 9.3% to USD 2058 per tonne in February 2023. However, in March 2023, the market stabilized as crude oil prices slightly increased, leading to offered quotes settling at USD 2060 per tonne.
In April, the overall market sentiments for White Oil stabilized in North America, and the offered quotations for Cosmetics Grade White Oil CFR Texas declined slightly by 0.8% from USD 2060 in March per tonne to USD 2043 per tonne in April 2023.
Conversely, in Asia, market prices initially declined in the early weeks of the first quarter of 2023. However, they later rose slightly amid robust downstream demand and an increase in import rates of the raw material. The region experienced stable market dynamics throughout the second half of Q1 2023. However, the market fundamentals balanced in the region, and in April, amid stable supply and demand dynamics, the market prices of White Oil stabilized in Q2 2023.
China's demand perspective and Russia's production front remained sources of uncertainty during this period, with China consistently importing Russian crude oil. In China, White Oil Technical Grade prices CFR Shenzhen started at USD 1756 per tonne in January 2023, slightly sliding by 0.4% to USD 1749 per tonne in February 2023. However, in March 2023, prices rose by 1.5% to USD 1755 per tonne in the domestic region as supply and demand dynamics expanded. However, the market sentiments for White Oil stabilized, and the offered quotations for White Oil Technical Grade Spot Ex-Shenzhen settled at USD 1838 per tonne in April 2023 from USD 1847 per tonne in March 2023.
According to ChemAnalyst, White Oil prices are expected to rise in the Asian markets, while a stable to downward pricing trend is anticipated in the North American market.
