Base oil market activity was muted in some Asian countries due to the celebration of the Diwali festival, while in others, buyers proceeded with caution as crude oil and fuel prices have fallen from highs registered after the start of the Israel-Hamas war in early October. The fall nurtured hopes that feedstock trends would influence base oil values in the coming weeks. API Group II and Group III spot ranges have indeed shown small downward adjustments on plentiful supplies and softening demand coupled with the weaker feedstock prices.
Crude oil futures retreated this week on a United States inventory build and concerns about falling global demand levels due to economic uncertainties, particularly in the second largest oil consumer, China. The Brent contract dropped by more than 3% on Thursday and was trading slightly above $78 per barrel.