The reason of Volatility of oil and RPO
- The decline in oil inventories America in compare of what they expect before
- High demand of gasoline and petroleum product by starting the summer
- 10% Growth in producing petroleum product
- According to International Energy Agency Energy (IEA) growth in production of non opec refinery’s
- Growth in Dollar index
- Libya’s national oil company increased production by one million barrels per day by the end of July.
Rubber process oil price depends on different factors
Rubber process oil prices depend on crude oil price and crude oil price has an international price which depends on many factors as below mentioned:
- In high season of rubber process oil when most of the refineries have been sold out their extract oil and may don’t have cargo for around 1-3 month prices of other refinery will goes up .
- If there was any damage or explosion in on refinery prices of RPO will increase.
- High supply of rubber extract oil means demand is low, which means that the prices will be low, too; in case of a low supply processing oil increases demand and raises prices.
- If there is any change in Packing prices like steel sheet of drum when packing of RPO extract is drum or poly ethylene or plastic material price when packing is flexi bag .
- Dollar exchange rate also has an effect on rubber processing price, depends on many factor like political issues.
- Natural and man-made disasters can drive up oil prices if they are dramatic enough.
- Local demand of furfural extract may affect higher price when exporting process oils.
- Local transportation cost may increase or decrease prices of extracting oil.
