Base oil market activity remained steady given avid buying interest from downstream lubricant segments during the summer driving season, although business was somewhat subdued due to the Independence Day holiday in the United States on Monday, July 4, with no price changes noted. Participants kept a concerned eye on crude oil and feedstock values, as strong fluctuations continued to impact refinery operations. On the naphthenic side, San Joaquin Refining communicated a price increase, joining other pale oil producers who have implemented upward adjustments since mid-June.
While buying appetite for base oils remained robust, some participants expressed concerns at the possibility that demand would start to decline in the next few weeks as the summer driving season wraps up and recession fears dampen the outlook for lubricant consumption.
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