Improved activity levels and steeper crude oil values lent support to base oil prices in Asia, with an additional nudge coming from potential reductions in base stock production rates and plant turnarounds. –by Gabriela Wheeler
LNG Publishing Company
Editor, Base Oils
Gabriela Wheeler graduated with an MA in English from California Polytechnic State University in San Luis Obispo. She joined LNG in May 2013 as the editor of the U.S. and Asia base oil price reports, after holding editorial positions at Bobbin Blenheim, Burson Marsteller, and ICIS, where she was responsible for price reporting on several petrochemical markets, as well as base oils.
Wheeler has previously resided in Japan, Argentina, Poland and the Dominican Republic.
The Presidents’ Day holiday on Monday, coupled with the start of the ICIS World Base Oils & Lubricants Conference in London, resulted in subdued activity, with many players being away during the week. –by Gabriela Wheeler
The base oil market in Asia slowly regained its regular pace, following several days of muffled activity due to the Lunar New Year holidays, when many participants were away from their workplace. –by Gabriela Wheeler
Export sales and a slight pick-up in domestic demand may help alleviate the oversupply conditions currently weighing on base oil pricing. –by Gabriela Wheeler
The Lunar New Year festivities resulted in reduced trading in large parts of Asia this week, while preparations for the spring production cycle appear to have started in others. –by Gabriela Wheeler
Slightly more positive sentiment was detected among base oil producers this week, as fundamentals appeared to stabilize and requirement levels improved somewhat. –by Gabriela Wheeler
Activity in some countries started to wind down ahead of the Lunar New Year celebrations, while in others, trading remained subdued as the market was riddled with uncertainties. –by Gabriela Wheeler
Producers’ main concern remains the hefty inventory levels at most base oil facilities, particularly as demand has been slow to pick up the pace, but the approach of the spring buying season seemed to be a light at the end of the tunnel. –by Gabriela Wheeler
Gabriela Wheeler encourages optimism in a base oil market filled with uncertainty.
Spot numbers in Asia continued to be exposed to downward pressure on account of the current supply-demand conditions, together with feedstock price volatility. –by Gabriela Wheeler
The freezing temperatures that covered large swaths of the United States this week seemed to have a numbing effect on the base oils market, as activity remained largely muffled. Trading was also subdued due to the Martin Luther King Jr. Day holiday on Monday. –by Gabriela Wheeler
A lack of enthusiasm appeared to characterize the base oil market in Asia this week, with sellers seemingly reluctant to step out with offers due to crude oil volatility, and buyers waiting for prices to drop. –by Gabriela Wheeler
Excel Paralubes, Petro-Canada and Calumet reduced their API Group II posted prices on the heels of a similar adjustment by Chevron the previous week. –by Gabriela Wheeler
Base oil spot prices in Asia continued to be weighed down by oversupply and sluggish demand. This was juxtaposed by climbing crude oil values, which could exert upward pressure on base oil prices. –by Gabriela Wheeler
Chevron stepped out with a price decrease on Tuesday. On the naphthenic side, Cross Oil, Calumet and San Joaquin Refining lowered prices of their base oils as well, a few days after Ergon announced a price decrease for its pale oils. –by Gabriela Wheeler