Base oil markets throughout Europe, the Middle East and Africa are in flux at the moment, with API Group I oils stabilizing while Group II and III continue to face downward pricing pressure.
The API Group I market appears to be balancing after months of being oversupplied. Buyers are reacting by looking now for replacement and export stocks since they fear that prices may start to rise – a reaction that is creating additional demand though perhaps only temporarily. Producers, still suffering from poor margins, insist they are determined to limit further discounts – either by restricting production or refusing to sell at exceptionally low numbers. Group I offers are being accepted without counters.