BASE OIL DISTRESSED SUPPLY AND THE GLOBAL IMPACT
The international market obviously has suffered from the Covid-19 crisis, and the oil industry is having its share from the pandemic outcome together with the shortage in supply with refineries around the world either closing or under maintenance. Thus, causing an increase in prices and tight supply while the demand is so strong.
As the production of lubricants such as industrial lubricants is related to the automation and industrial growth in emerging economies, and the motor oils to automobile fabricants...etc. It became so difficult to keep the business functioning as usual under such circumstances. Refineries offering high prices to distributors, leaving the oil and lubricants manufacturer across the world and Europe to face pressing times (mainly due to the limited supply of the first quarter of 2021 of base oil from group I and II) while the forecast is showing a little hope in available stock and decrease of prices.
As active players in the petroleum sector that have been in the market for more than two decades, we are engaging a resilience and adjusting our activities to provide a new action plan for the upcoming period. Hence, maintaining the same level of performance and continuing the supply of products that are ready to export to our distributors and loyal clients. The reality is not hiding the factual expectations of a shrink in production capacity and growth opportunity; however, with the effective manufacturing methods, manufacturing facilities, and pricing strategy, we are to sustain the supply of finished motor oils and lubricants towards the global market.
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