For the Quarter Ending December 2022
North America
White Oil prices have remained on the upper edge in the US market throughout the fourth quarter 0f 2022. Elevated inflationary pressures across the globe coupled with tight monetary policies have accelerated the pricing dynamics of White Oil in the US market. The cost support from upstream raw materials was limited, as reported by market participants. In November, the prices of natural gas escalated and pressured the production costs of White Oil in the domestic region. Furthermore, the procurement from the downstream personal care sector was average, and the competitive offers from other countries have weighed on the market fundamentals of White Oil. The ChemAnalyst database has shown that White Oil cosmetic grade CFR Texas was settled at USD 2359 per ton in Q4-end.
APAC
In the Indian domestic market, the prices of White Oil have retained their downward trajectory in the entire Q4. The prices fell amid abundant supplies and a slowdown in demand from the overseas market. The demand from the downstream personal care sector was not sufficient to cause a rise in the market value of White Oil. The market has operated at low levels, and the shipment has been lowered. On the upstream front, the cost support from upstream Crude Oil has also weakened and supported the decline in the price realizations of White Oil in the fourth quarter. In addition, the freight rates have also remained on the lower end. Consequently, White Oil WT 150 FOB JNPT prices were settled at USD 1038 per ton in December.
Europe
In the fourth quarter of 2022, the prices of White Oil have demonstrated mixed market sentiments. The high inflation, coupled with limited supplies of natural gas, has hampered the market growth of White Oil in the domestic region. The procurement of White Oil from the end-use industries was limited, prompting the traders to reduce their offers and increase the shipments amid the destocking season in December. The prices of upstream Crude Oil have remained in the negative territory throughout the fourth quarter and weakened the market sentiments. Furthermore, high natural gas prices have impacted production costs and culminated in lower operating rates. However, at the end of Q4, the inflationary pressures have been eased, and manufacturing activities been improved in the German market.
For the Quarter Ending September 2022
North America
The White Oil prices have observed an overall uptrend throughout the third quarter of 2022. The overall market transactions for White Oil remained below average amidst steady demand in the domestic market, followed by a conservative attitude of the market participants regarding bulk procurement over the current inventories. The market has observed softer fundamentals besides the uncertainties regarding the hurricane season on the U.S. Gulf coast. The U.S. market has struggled with rising interest rates and global macroeconomic constraints in Q3. On the upstream price front, crude oil and natural gas costs fluctuated amidst the economic slowdown across the regional market. Consequently, White Oil cosmetic grade CFR Texas (USA) closed its market at USD 2205 per ton on September 2022.
APAC
White Oil prices in the Asia Pacific region demonstrated mixed market sentiments throughout the third quarter of 2022. In the domestic market of China, the resumption of production activities has accelerated the market growth of White Oil in early Q3. However, entering August, the White Oil Prices plummeted against the more moderate Crude Oil prices with the increased oversupply amid the weakened demand outlook. The combination of demand destruction in Europe and Asia coupled with volatile energy prices has prompted negative cost pressure on the price realization of White Oil among Chinese manufacturers. Furthermore, towards the end of the third quarter, the White Oil offers have accelerated against the backdrop of rising inquiries from the downstream personal care industries. Additionally, in India, the White Oil demand has passed through an off-seasonal period amidst the monsoon. Therefore, considering the aforementioned factors, White Oil Technical grade CFR Shenzhen (China) prices assembled at USD 1610 per ton at quarter-end.
Europe
In the third quarter of 2022, White Oil prices oscillated in the European region. The persistent backlash between European nations and Russia has severely squeezed the manufacturing activities of downstream personal care industries in the German market. In mid-Q3, the burgeoning energy values propelled the White Oil manufacturing costs, affecting the terminal demand fundamentals. The high freight rates and logistics issues with ongoing summer holidays affected buying interest. The market participants have reported that new orders rose at the softest pace this month owing to steep upstream pressures paired with economic uncertainty, weighing on the nation's economic growth. Furthermore, the euro has weakened most significantly against the dollar, resulting in remarkable import inflation across the major economies of Europe.
For the Quarter Ending June 2022
In the second quarter of 2022, the White Oil market in the North American region was weakened amidst inadequate demand from the domestic and overseas markets. The retaliatory sanctions on the Russian energy supplies onslaught of additional Crude Oil supply from the US strategic petroleum reserves showcased no deficit in supply in the US domestic market. Furthermore, the region observed an oversupply scenario against the lul demand from the downstream polymers sector. The COVID situation in China significantly impacts the upstream white oil. Whereas the inquiries from the food and medical sector have remained average.
During the second quarter of 2022, the White Oil market in the Asia Pacific region remained bearish. The demand remained sluggish amidst the resurgence of COVID in China, which significantly impacted the Polymer industry. Despite the higher cost margins and rising energy prices, the downtrend in the Polymer market has narrowed the spread for White Oils in the APAC region. Furthermore, according to the customs data, the Chinese blenders supplied around 380,000 MT of heavy bunker fuel in total during the last month of the second quarter. As for light bunker fuel, the domestic marine oil supplies stood at around 170,000 MT in the month, rising by 20,000 MT or 13.33% on a month-on-month basis in June.
As of the second quarter, the White Oil market in the European region was staggered with different trends. The eastern part observed a bullish sentiment in the market dynamics amidst the ongoing conflict and imposition of western sanctions on Russia. At the same time, the Northwest European region market observed a persistent gyration as the US market participants were restocking the inventories in the region ahead of the hurricane season to keep the supply chain smooth. In addition, the inquiries for White Oil were inadequate to support the price chart as the European players were seeking finished goods due to the gyration in the domestic market.
