With the warmer temperatures, base oil demand has heated up in some countries, but it typically cools down in some others such as the key market China. The slowdown may coincide with a number of plant turnarounds that are scheduled to take place in Asia over the next few weeks and were expected to limit spot supply from a number of producers. Prices were generally stable, although a number of grades have softened on weakening buying interest.
Some of the market’s attention this week was focused on the annual Group of 7 summit taking place in Hiroshima, Japan, where leaders of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, as well as the European Union, were expected to discuss current geopolitical issues and ways to maintain global economic stability. Economic uncertainties, inflation and a potential global recession have all impacted base oils and lubricants demand over the last several months.