Base oil trading in Asia has almost come to a standstill, as many participants were away during the Lunar New Year holidays this week.
Some of the upward pressure on prices that had been noted over the last couple of months has dissipated given that crude oil values have softened. Nevertheless, base stock producers were still keen on improving squeezed margins.
Even though crude oil futures reversed course on Wednesday, and extended gains from the previous session, they were substantially down from two weeks ago.
Futures were buoyed on Wednesday and Thursday by a weak dollar and Saudi comments that the country would rather see an undersupplied market than alter the deal with OPEC and Russia to curb production levels.
Brent futures were trading at $64.99 per barrel, up around 1 percent, on Thursday, Feb. 15, extending Wednesday's 2.6-percent climb on the London-based ICE Futures Europe exchange.
In comparison, Brent futures were hovering at $65.24 per barrel on Feb. 8.
As a result of generally subdued activity in the market, the base oil spot assessments portrayed below were notionally unchanged for the week.
On an ex-tank Singapore basis, Group I SN150 and SN500 were holding at $730/t-$750/t, and $840/t-$860/t, respectively. Bright stock was unchanged at $920/t-$940/t, all ex-tank Singapore.
Group II 150 neutral was assessed at $750/t-$770/t, and 500N was at $900/t-$920/t ex-tank Singapore.
On an FOB Asia basis, Group I SN150 was steady at $670/t-$690/t, and the SN500 grade was holding at $780/t-$800/t, FOB Asia. Bright stock was heard at $830/t-$860/t.
Group II 150N $690/t-$710/t, and the 500N/600N grades were up by $5/t at $790/t-$830/t, all FOB Asia. The FOB Asia assessments underwent upward revisions the previous week to reflect market discussions.
In the Group III segment, the 4 centiStoke and 6 cSt grades were gauged at $800/t-$820/t, and the 8 cSt at $780/t-$800/t, FOB Asia.
Gabriela Wheeler can be reached directly at gabriela@LubesnGreases.com.
LubesnGreasesshall not be liable for commercial decisions based on the contents of this report.