Activity in Asia was spotty, with some markets seeing a slight pickup in base oil requirements and others still showing sluggish conditions because of economic uncertainties or the observance of local holidays. The Diwali festival in India the last week of October and the Culture Day holiday in Japan this week resulted in subdued trading. Some of the public’s attention was also focused on the tragedies that took place over the weekend in South Korea and India.
Despite a temporary halt in trading activities in India given the celebration of the Diwali festival in late October, market conditions in general were encouraging as business picked up the pace following the slower monsoon season. Diesel sales in October surged from the previous month, indicating an increase in industrial activity during the peak festive season. Gasoline demand was also up because of personal mobility as families gather for the festivities. “Fuel demand in India – a proxy for oil demand in Asia’s third-largest economy – typically rises during the month-long festival season as diesel-guzzling trucks hit the roads to deliver goods,” Reuters reported.