The U.S.base oils market remained mostly balanced through July.Mostly balanced supplies and manageable surpluses supported firm prices.U.S.base oils prices have held steady as a result.Prices increased from mid-March through early June.Two rounds of producer posted price increases in March and April helped support steady to firm prices through at least late July.Chevron raised its posted prices by 20 cents per gallon on July 2 in response to higher feedstocks prices.But none of the other producers raised their prices.Some domestic blenders have accepted the higher contract prices,but others requested discounts and expressed a willingness to secure supplies from other producers that have not raised prices.Some producers started to offer discounts or temporary value adjustments(TVAs) in mid-July,despite the recent posted prices increases.Some discounts were seen at 10 cents to 14 cents per gallon.Chevron subsequendy rescinded the price increase on July 23.Supply-demand dynamics in the U.S.market had started to show signs of weakening by mid-July.Domestic demand was seasonally slower,and more surplus supplies had started to build up as a result of the weaker domestic demand.Producers then started to offer their surplus supplies into the spot market.Most excess supplies have been offered into the export spot market.Most producers were reluctant to lower their domestic prices.
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