The pace was more sedate in Asian base oil markets, entering the last month of the year. Spot prices for some grades came under pressure on fizzling demand and lengthening supplies, while prices for other cuts remained on a steady course on more balanced fundamentals. Participants were keeping a close eye on crude oil and feedstock values as they were volatile during the week ahead of an OPEC+ virtual meeting on Thursday.
OPEC+ countries plan to deepen production cuts to offset a seasonal decline in oil demand and downward pressure on oil prices, with some countries intending to produce less oil – a cut of about 900,000 barrels per day – in the first quarter of 2024, compared to current levels. Saudi Arabia, which has voluntarily cut its output by 1 million bbl/d since July, will extend that cut through the first quarter. News that Brazil might be joining the alliance in January 2024 also hit the market after the meeting, but it was too early to assess what impact this would have on overall oil production.