With many EMEA players preparing to vacate their desks for the summer break, few deals have been reported. Many base oil production units are taking advantage of the holiday season to run maintenance programs on the lube trains or in some cases on larger units within the refineries which will affect base oil production.
In the main, prices have remained flat at last weeks levels, other than for API Group III oils which continue to be in extremely short supply, and which have notched up some new highs in value terms this week. Supply allocation to blenders is having an effect on the market. With some prominent supply sources cutting back on production and the attraction of even higher prices being paid by markets such as the U.S., there is little likelihood of availabilities improving in the European and Middle East arenas until new production comes on stream.