Saving Grace
Activity in United States base oils market has been lackluster since the start of the year, with demand deemed rather subdued during the spring production cycle when lubricant manufacturers prepare stocks for the busy summer driving season. And unlike in previous years, demand for base oils and lubricants this year lacked brilliance, even when increased numbers of drivers took to the road.
While base oil suppliers prepared for a slowdown in consumption in the fall, they also expected a small uptick in requirements from consumers who have depleted inventories and needed to return to the market to replenish stocks, particularly as buying has been timorous for most of the year. Some buyers also preferred to postpone purchases until the fourth quarter, when prices tend to come under pressure, depending on supply fundamentals and crude oil and feedstock costs.