Oil prices have increased by 72% from USD 31.48 to USD 54.06 per barrel over 2016. It might signal a shift in the economics of existing recycling programs meaning that some of our members receive a better price for their ‘dry oils’. However, the market is still weak. Cement kilns and metallurgy companies are not yet working at full capacity or have switched to other types of fuel (gas, brown coal etc.) for different reasons.
The increase in oil prices feeds inflation boosting economic growth in most European countries. The rising consumer demand lowers unemployment rates and stimulates investments (CAPEX and OPEX). And an improving economy will foster economic growth and demand for energy products.
We hope our members will benefit from this economic growth, as we see that most members are filled up to their maximum storage capacity, even with slightly better prices.
And we hope the economic upswing will also contribute to a healthier shipping industry, because thriving shipowners make a thriving waste management business.