Base Oil Dynamics Dominate ICIS Discussions
The base oil supply/demand situation was uppermost in the minds of presenters and attendees at Februarys ICIS Base Oils and Lubricants Conference in London. In her opening remarks at the conference, Nynas Marketing Director Valentina Serra-Holm said that base oil producers head into 2015 facing a fundamental change in their economics.
She noted that crude prices have fallen dramatically since they stood at a peak of U.S. $115 per barrel in June 2014, reaching a near six-year low of $46 per barrel in January. She went on to describe the factors behind the rapid price drop, including oversupply, sluggish demand growth and the withdrawal of price supports from the financial community. Her full analysis of the situation and what it means for base oil producers starts on Page 46.
Ray Massons Base Oil Report on Page 6 echoes Serra-Holms analysis as he breaks down the opposing forces buffeting the base oils marketplace. Further afield, Mark Townsend examines the situation in the Middle East, and Boris Kamchev looks at the future of Russias market.
Finally, our staff will be racking up the frequent flyer miles this month, attending five key meetings to keep you abreast of the latest developments in the industry. We look forward to meeting our readers at the UNITI Mineral Oil Technology Congress in Stuttgart, the ELGI Annual General Meeting in Barcelona, ICIS Indian Base Oils & Lubricants Conference in Mumbai, Base Oil & Lubes Middle East in Abu Dhabi and the China Lubricants Market Focus in Shanghai.
– Howard Briskin
HBriskin@LubesnGreases.com