Lengthening supply and softening demand were some of the concerns that base oil suppliers were facing as the year-end holidays approached and business began to slow down. The situation of export transactions into Mexico, which was hampered by newly imposed import restrictions, appeared to be improving as a number of temporary permits have been issued. Crude oil and feedstock prices slipped from the steep levels seen in early October, placing downward pressure on base oil values.
Base oil posted prices were generally steady this week. The lower feedstock prices have encouraged some base oil buyers to request temporary value allowances or special discounts, but there were no reports of these being granted so far.