Overall U.S. base oil demand is deemed steady, but remains somewhat below expectations for the fall buying season. Some participants surmise that the ongoing shaky economic outlook is on the forefront of players minds and has thus slowed otherwise seasonal buying activity.
Posted prices in the United States rested unchanged this week, with no fresh price moves initiated since earlier this month. Previously, API Group I producers issued price hikes, but Group II and III suppliers have yet to join in. Some sources have doubts that the more premium base oil providers will follow with price hikes, unless demand picks up to a more robust pace.