U.S. Group I and II Base Oil Supply Improves but U.S. Exports Slow

摘要

U.S. Group I base oil supply is improving late in the third quarter, but recovery has not yet reached a balance with demand, buyers and sellers maintained. "It is getting better out there, but it is not yet balanced," one supplier said. A few domestic spot transactions were beginning to take place by late August, but very few discounts from posted prices were being offered, underscoring a narrow move toward balanced fundamentals. Unusually tight supply prevailed during the first half of 2011, caused by a rash of planned and unplanned plant outages and strengthening demand. Adding punch to the short supply issues of the first half of the year, U.S. base oil demand rebounded particularly in automotives, surprising many market players.