Diminishing demand from the international market has been a concern for key players of Base Oil since the previous month. As per the latest assessment, Base Oil prices remained dull throughout September and projected a further price decline for October in the global market.

As per the data, Base Oil prices in Belgium declined by around 3% for Group II light and 2% for Group I Light during the mid of September, which later witnessed a price rollover till the final week of the month. This price fall was primarily driven by the increased availability of the product amidst slowed offtakes by major importing countries like South Africa and India. Key market players of the European region remained cautious about future demand for the product, as the market outlook seems dark and pessimistic in regard to production activities.

A similar market trend was observed for middle eastern countries like UAE. Data shows a marginal decline in prices during the second half of September. As per the insights, abundant product availability led to a consistent fall in prices of Base Oil in the Asia and Middle Eastern markets. Cargoes heard to ready to be shipped for UAE as well as other importing nations in the Middle Eastern market.

In Asia, despite stable demand from the domestic market, Base Oil prices continued their downtrend continue till the end of September 2022. Indian traders had ample inventories to satisfy the overall need of the country, as they imported enough cargoes during the previous month under the optimism of arriving festive season in the country. Consequently, queries from Indian buyers remained slow despite festivities in the country, which eventually affected the overall demand in the global market.

As per the ChemAnalyst analysis, Base Oil prices are expected to keep on tracing a downtrend till the mid of October in the global market, as major exporters have already communicated negative revisions for their product, effective from 1st October.