The U.S. base oils market welcomed the New Year on a positive note. Sellers are pleased that demand continues at a fairly healthy pace, while overall availability is balanced to tight. Posted prices are holding for now, but some players sense upward pressure due to building operating costs.
Participants expect the first quarter of 2011 to be more active than years past. Even though buying interest slowed slightly in the latter part of 2010, it has remained healthier than some suppliers anticipated and is gaining momentum as this quarter progresses.