But whether producers can sustain postings at current levels remains to be seen, given recent developments in the upstream sector. Crude oil values have slowly firmed over the past few weeks and peaked over the $48 per barrel mark during Tuesdays NYMEX intra-day trade session.

Meanwhile, base oil suppliers concurred that there is a notable pickup in demand compared to early first quarter activity. In fact, suppliers gleefully commented that consumption of a variety of paraffinic grades has shown considerable improvement each week since the beginning of February. Sellers noted that December and January sales had been very slow, and February was only moderately improved. This weeks March sales outstripped the previous week.

Despite this recent build in demand, suppliers reiterated that overall customers volumes are below previous years by an estimated 10 percent to 20 percent. More dramatically, year-to-date 2009 sales are about 35 percent to 45 percent below the same period last year.

According to news reports, leaders of the Organization of Petroleum Exporting Countries have suggested for weeks that the group may cut output quotas at its next meeting, scheduled for March 15 in Vienna.

Iraqi Oil Minister Hussain al-Shahristani was heard saying that oil prices were too low, and OPEC is working to inch them up.

Investors expect OPEC to announce fresh production cuts of between 500,000 and one million barrels per day. Analysts speculated that if the cuts exceed expectations there could be a short-term spike in oil prices, although it would take months before the effect of the production cuts could be felt.

Some reports suggested that investors have largely brushed off OPECs output cut announcements for months, doubting whether the cartel would have the discipline to implement them.

In other news, a recently released update from the automotive sector said that February U.S. sales fell to the lowest annualized rate in 27 years. Automakers plan to slash production in a desperate effort to control inventories. Manufacturers are expected to produce only 4.1 million vehicles in North America in the first six months of 2009, down 41 percent from a year ago.

At the close of the Tuesday, March 10, NYMEX session, light sweet crude futures ended the day at $45.71 per barrel, a gain of $4.06 compared to the $41.65/bbl settlement reported one week ago.

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