Remains of the Day
Against the backdrop of a world shaken by the ongoing covid-19 pandemic and the protests calling for racial justice that erupted not only in the United States but around the globe, there was no doubt that momentous changes lay ahead.
While the demonstrations were not expected to have a direct effect on base oil market fundamentals, participants acknowledged that general uncertainties and the economic recession were weighing on consumer confidence. This, in turn, was impacting product requirements.
Even though the base oils market remained fairly subdued, encouraging signs of improved demand started to emerge in early June. The segments that supply passenger car motor oils and other lubricants saw a moderate upswing in demand with the easing of lockdown restrictions and a return to driving, even as car sales in the largest economies—including Japan, India, China and the U.S.—have plummeted.