The strained supply and demand balance kept participants on their toes and spot prices on the rise, but participants said values may be close to reaching a ceiling as blenders were largely unable to transfer the base oil increases down the supply chain. Renewed concerns about the coronavirus pandemic and how it might affect demand in key markets such as India were also expected to impact pricing moving forward.
For the time being, quite a few buyers still appeared to be willing to accept the higher offers being bandied around, but the week-on-week increases have diminished in scope. Chinese buyers seemed to be less actively interested in securing cargoes at any cost, and this has alleviated some of the price pressure.
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