U.S. base oil demand continues at a healthy clip, keeping up with the trend established about a month ago. Overall supply availability has tightened further in the past week or so, largely due to the recent production mishap at Motivas Port Arthur, Texas, facility. The producer has since instituted a sales allocation program.
Following an unscheduled plant disruption at one of the processing units on Saturday, May 12, Motiva has been faced with supply challenges. The company has alerted its customers that it initiated a 50 percent sales allocation.