As May got under way, U.S. base oil suppliers reveled in the fact that customer orders were showing much improvement over a somewhat disappointing April. Volumes are projected to be very healthy by many accounts, and a few sources speculated that this more positive trend could easily last through June.
Aprils slowdown had been somewhat surprising, as March was considered a decent month and a good kick-off to the spring fling buying season. However, some players now suspect the market was just taking a breather or waiting for dispatches from the economic front.
That pause appeared to have paid off, as several positive signs emerged to inject a big boost of optimism in late April/early May. Encouragingly, U.S. stock market activity climbed to historic levels in the first week of May. The Dow Jones Industrial Average shot over the 15,000 point level, and the Standard and Poors 500 also struck a new high.
Oddly, and despite the fact that crude values were again on the rise, posted price decrease notices were seen for some base oils. Flint Hills Resources came out of the chute in early May, announcing a drop in four of its API Group II grades. Market participants were a bit stupefied by this move and wondered if other producers would follow.
As June unfolds, players are holding out for more … more activity, more demand and more good news to stimulate the economy and ultimately the market.
Dear friends and subscribers,
After 23 years of covering the base oil market, the time has come for me to take a step away from the working world. My time with you has been a wonderful and rewarding experience, and an exciting ride. I wish you all the best as I begin the next phase of my life. Like they say, Change is necessary in order to grow, and I just hope that I grow in the right direction! Who knows, I may even learn to fish.
Thank you for all your support, guidance and for being a part of my career. Ill miss you.
Warmest regards,
Carolyn