Price Risk in a Volatile Market

摘要

Price volatility in the U.S. base oil market has persisted for at least six years, causing massive fluctuation in refiners' margins. With supplies rising and prices changing with increasing frequency, understanding changes in the price relationships between base oil prices and competing and feedstock fuels becomes increasingly important as buyers and sellers respond more efficiently to those changes. But while the relationship with diesel and vacuum gasoil remains critical, an accurate spot price remains the cornerstone of managing risk in the base oils market.