Base oil market participants seem to have adopted a wait-and-see position on the back of changing fundamentals. Plunging crude oil values lifted some of the pressure on base oil prices this week, but refiners kept a watchful eye not only on crude oil pricing, but on competing fuel prices as well, as these largely determined the allocation of feedstocks at the refining level. Base oil suppliers have implemented several posted price increases since the beginning of the year to support base stock output, with prices reported as generally stable this week.
West Texas Intermediate crude oil prices plummeted to the mid-$90s per barrel on persistent concerns about a possible recession, new lockdowns in China and prospects of reduced demand in coming months.
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