Base oil prices were exposed to upward pressure as certain market segments displayed further tightening of supplies, while crude oil and feedstock prices continued their ascent. Some attention turned to developments in Eastern Europe, after Russia attacked Ukraine, pushing crude oil values to multi-year highs and Brent to levels above $100 per barrel for the first time since 2014.
Suppliers in Asia had already started to increase their offers, given the upward movement of feedstock prices over the last two months, and with values moving up again this week, some sellers were digging in their heels and were not accepting bids below a certain level. One factor that everyone was keeping an eye on was freight, as rates have gone up dramatically and played a big role on whether buyers would be able to buy product from more distant sources. An Omicron surge in many countries was also affecting logistics and shipping schedules.