U.S. base oil suppliers and buyers said this week that the market remains robust despite the growing likelihood of impending price cuts.
One marketer said that demand rebounded in October after dropping sharply in September. Overall, demand has still fallen this year, he said, but suppliers have not cut back on production, largely because refining spreads remain so high.
With margins as healthy as they are, people arent about to cut back, he said. They may be short in some grades and theyre willing to make extra amounts of other grades and export if they have to.
With crude oil prices continuing to sag despite OPEC efforts to shore them up, industry insiders say it appears increasingly likely that U.S. base oil prices, which fell in October, will be cut again soon.
European prices dropped just recently and were expecting that the same thing will happen here very soon, one major base oil purchaser said. With crude so low, theres certainly room for it.
Historic U.S. posted base oil pricesand WTI and Brent crude spot prices are available for purchase in Excel format.
|
|