INSIGHT


Base Oil Report


Europe European domestic Group I and II base oils spot prices continued to fall at the beginning of January with limited demand slowing market activity. Players largely adopted a wait-and-see stance to January. Group III values remained unchanged this week amid limited activity in the market. European export prices for Group I material decreased triple digits this week amid a flurry of lower offers. There were a lot of offers seen in the market in early January and not a lot of demand.


US


US posted prices declined in early January while assessed values remained more stable. The moves in posted prices come after spot prices declined through November and December and after some refiners gave contract customers temporary voluntary allowances (TVAs) in December. Export levels continued at a steep discount to domestic prices. There is enough availability to meet existing demand, which was low in the first few weeks of the year.


Asia


Prices of Group I base oils in Asia fell at the beginning of January, as did Group II spot values. Group III levels were stable to soft dependant on grade. There was an oversupply of Group II material which was in turn dragging down values of Group I product as these grades can be switched in some cases. Market sentiment was stifled by weak Chinese demand.


Middle East


Middle East base oil prices were stable in early January amid an absence of firm deals done or offers. Market players had not started active discussions at the start of the new year. Some market players were concerned about sluggish demand and persistently volatile crude oil prices, which have the potential to affect the margins of base oils producers.


Samantha Wright, Senior Editor Manager


www.icis.com


LUBE MAGAZINE NO.173 FEBRUARY 2023


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