As the coronavirus pandemic continues to wreck economies around the world, demand is falling and even disappearing from some markets as refiners slash production and sales drop.
As with almost all markets around the globe, base oils are being affected greatly by the current situation. Demand is no longer merely failing, demand has actually disappeared from many regions which traditionally used large quantities of all types of base oil. There are sporadic movements of base oils, although many are majors re-adjusting inventories between hubs, perhaps trying to even out storage capabilities wherever possible. There are fewer and fewer shipping inquiries coming to the market, suggesting that a much lower number of sales and purchases are being arranged.