Despite fairly subdued trade conditions, the base oil market in Asia experienced a tumultuous week, given political and economic developments on the world stage. –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.
Slipping crude oil and feedstock prices offered some relief to base oil producers, as margins had tightened over the past few weeks. –by Gabriela Wheeler
Base oil market participants were grateful for the current respite from price fluctuations and supply issues, as activity was proceeding at a reasonably steady pace during the “dog days of summer.” –by Gabriela Wheeler
Despite a seemingly serene market scenario – with stable pricing and no production issues reported – there was some anxiety among base oil market participants related to the ongoing hurricane season. –by Gabriela Wheeler
Rising base oil inventories and lackluster demand continued to affect pricing and business in Asia, with a number of producers looking at opportunities in other regions to mitigate some of the pressure. –by Gabriela Wheeler
The base oil market appeared to have drifted into a summer slumber, as buying activity slowed and prices remained flat. –by Gabriela Wheeler
Gabriela Wheeler points to resilience as a key trait of successful base oil producers.
Abundant supply and wavering demand partly dampened business prospects in Asia's base oil markets. Production cutbacks were expected to bring some relief but likely not to be a panacea for the region's imbalances. –by Gabriela Wheeler
Chevron communicated a price decrease of 20 cents per gallon for its API Group II base stocks this week, effectively rescinding the 20-cent price increase the producer posted on July 2. –by Gabriela Wheeler
The base oil market in Asia was chugging along, with prices reported as stable to soft, sellers evaluating market conditions, and buyers assessing purchase needs for the next several months. –by Gabriela Wheeler
While a vast portion of the market appeared to have slipped into summer mode, a few suppliers reported a small jump in orders, likely from buyers securing product ahead of potential base oil price adjustments as crude oil values continued their climb. –by Gabriela Wheeler
Gabriela Wheeler is away. Her column will reappear in the July 19 edition of Lube Report Asia.
A number of base oil producers have taken a wait-and-see position, following Chevron’s posted price increase last week. –by Gabriela Wheeler
Chevron announced a price increase this week, which came as a bit of a surprise since participants expected the market to remain fairly low-key ahead of the Fourth of July holiday. –by Gabriela Wheeler
Supply in the Asian base oil market was expected to remain long, despite upcoming turnarounds and potential operating rates cutbacks by regional producers, as demand levels were not likely to make great strides in the coming weeks. –by Gabriela Wheeler