However, and in opposition to buyers way of thinking, producers are still not convinced that postings need to be altered to the downside given the severely pinched supply situation.

A number of suppliers admitted that they are walking a tight rope between improving operating margins and alleviating customers supply concerns. They reiterated that margins suffered tremendously earlier in the year, despite the numerous price hikes that occurred, and bottom-line profits are only now recovering.

In the meantime, both consumers and sellers acknowledge that supply remains tight, and there are no surplus gallons readily available.

Market prices have not faltered. Suppliers said that even though there are a few consumers expecting base oils prices to soften due to weaker crude, they have not succumbed to offering lowering prices – at least not yet.

In related market news, Oil prices will remain high despite their recent drop and are weighing on demand, especially in developed countries, the IEA said on Tuesday.

In its recently issued monthly report, the International Energy Agency, a Paris-based watchdog, further said, It was too early to know whether the recent decline in oil prices is the start of a longer-term trend, as demand in developing countries could still offset declines in developed nations that are part of the Organization for Economic Cooperation and Development, or OECD.

Although crude futures have fallen 20 percent from their lofty early-July levels, the price remains high by any measure, sustaining inflationary concerns, not least in developing importer countries, said IEA.

At the close of the Tuesday, Aug. 12, NYMEX session, the front-month light sweet crude futures closed at $113.01 per barrel, down $6.16 from the Aug. 5 settlement at $119.17.

Carolyn L. Green, based in Houston, can be reached directly at carolyn.l.green@gmail.com.

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