Sources said that even though market conditions may appear quiet, business is continuing at a steady stride. Buyers reiterate that supply availability remains largely tight across the board, although there has been some improvement. They have not benefitted from sellers offering discounted prices, which further confirms that suppliers are comfortable with their stock positions.

Meanwhile producers say that their overall inventories are considered balanced-to-tight, and there is no need to initiate any type of sell-off just because the market is outwardly quiet. A few sellers went on to add that any surplus product that may have become available in recent weeks is negligible and can easily be sold at or above market price levels.

Traders backed this up, saying that it remains very difficult to source large slugs of base oils for export purposes. Demand from Asia and other deep-sea destinations is still healthy, but shipments ex-U.S. are few and far between.

Motiva and Chevron continue to operate under their sales allocation programs on several API Group II/II+ base oils. Group III cuts are also extremely tight, according to various sources.

Conversely, fresh rumors emerged this week that a spot cargo of Group III ex-Asia may have found its way into the U.S. market via the Middle East. Details about this transaction could not be substantiated.

Benchmark WTI crude futures slipped back into the low $90s per barrel after rallying over $100/bbl a week ago. The decline was largely blamed on pressure stemming from the U.S. debt-deal situation and concerns over the economic recovery taking a downturn.

At the close of the Tuesday, Aug. 2, NYMEX session, light sweet crude futures ended the day at $93.79 per barrel, a loss of $5.80 compared to the week earlier settlement at $99.59/bbl.

Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.