U.S. base oil suppliers continued to maintain their posted prices while waiting and watching for signs of where crude oil prices will settle.
Crude prices, which jumped to $30 a barrel after Sept. 11 terrorist attacks in the United States subsequently fell almost as low as $20 a barrel before rebounding slightly last week. This week, prices have fallen again. November deliveries of light crude dropped 49 cents to $22.79 per barrel on the New York Mercantile Exchange Tuesday, according to the CNN Financial Network.
Base oil suppliers say they are waiting for more cost stability before deciding whether to change their own prices but it appears that crude prices may be approaching levels to justify a reduction of base oil prices.
If crude dropped down close to $20 and if it sustained that price, I think you might see some people lowering their prices, one industry executive said.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.
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