U.S. Base Oil Market Faces Higher Costs Entering COWD-19 Demand Recovery

摘要

U.S. base oil market players entered the second half of 2020 facing upward price pressure from firm costs and balanced-to-snug supplies - bullish factors that were offset by ongoing demand weakness downstream. The only certainties appeared to be that higher upstream prices were holding steady and that the base oil supply overhang was reduced through exports and lower refinery rates. Demand recovery remained a wild card. The trough of the COVID-19 demand destruction was likely in the rearview mirror, but players were cautious as to whether the midsummer demand pickup was a function of restocking or truly indicative of downstream recovery.