Base oil markets are getting back to some form of normality as buyers and sellers returned to work this week after summer holidays. Activity seems slow so far, but perhaps the coming days will yield some direction about the direction of the markets.
API Group I remains balanced despite a strike at a Northwestern European refinery. The strike had shortened availability, but gaps have been filled from alternative sources around Europe and the Baltic. It is too early to gauge whether demand will rise during the next few weeks, although sources said some blenders are back in buying mode and interested to establish supply contracts for next year for Group I grades.