It was a fairly quiet week for trade in the U.S. base oil arena. Producers appear to be sizing up the supply/demand situation while contemplating improving margins going forward. Buyers, meanwhile, are holding out for good deals. Whether there are suppliers still willing to offer steeply discounted prices remains unclear.
Sources said that, in recent weeks, a few paraffinic spot transactions involving both domestic and export parcels were concluded at below $1.50 per gallon FOB. Many suppliers considered those prices unrealistic and not representative of todays market. They added that such a price point would most likely not be repeatable for May business since feedstock costs have increased over the last month.