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Base oil prices in the US moved decisively higher in April as tightening supply from refinery disruptions met robust seasonal demand ahead of the summer driving season. Early April saw the Base oil market range-bound, but by mid-to-late April buyers faced constrained availability as refiners shifted runs toward distillates and producers pulled back on spot offers. Meanwhile, downstream procurement for engine oils, greases and industrial lubricants stayed firm, leaving limited slack in the system.
Base oil demand strength was concentrated in automotive and transportation sectors, which supported sustained purchasing for engine oils, while industrial lubricant makers maintained appetite for greases and finished-lube stocks. The April contract assessment for Base Oil Group II H *** FOB Texas settled at $*,***/MT, up sharply from the prior period level of $*,***/MT, reflecting the tightening balance and stronger downstream consumption. Demand remained robust, particularly from the automotive, industrial...
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