In the first half of February 2025, white oil prices exhibited a downward trend in both China and the United States, influenced by a combination of supply dynamics, demand fluctuations, and broader economic factors. This decline reflects the complex interplay between production costs, inventory levels, and market sentiment in the global petrochemical industry.

In China, white oil prices remained subdued during this period. Initially, prices-maintained stability as companies gradually resumed operations following the Lunar New Year holiday shutdowns. A notable decline in crude oil prices further eased production costs, ensuring steady white oil output. Manufacturers ramped up production and increased input purchases, leading to higher inventory levels and improved vendor performance. However, as the month progressed, the market experienced a 1.1% price decline, reflecting weak market sentiment and subdued trading activity. Despite downstream companies gradually resuming operations, the pace of demand recovery was slow, with terminal purchases remaining cautious. Traders and downstream enterprises adopted a conservative approach, purchasing only on demand, with small orders dominating the market. On the supply side, major refineries maintained stable operations but focused on inventory reduction, offering large discounts, and sporadically lowering prices to facilitate shipments. This strategy, aimed at clearing existing stockpiles, contributed to the downward pressure on White Oil prices.

Similarly in the United States, white oil prices similarly trended on the lower end during the first half of February, underpinned by robust domestic supply conditions. Data from the EIA indicated that feedstock crude inventories surged by 4.1 million barrels to reach 427.9 million barrels by early February, ensuring ample availability for white oil production. U.S. manufacturing activity also showed modest recovery with increased new business inflows and production expansion. However, global declines in feedstock crude prices led to lower production expenses, and reduced freight charges further mitigated logistical costs for imported white oil. Although an initial surge in demand offered some support, it quickly moderated as sufficient inventories and lingering concerns over tariffs and inflation dampened overall consumer sentiment.

Looking ahead, white oil markets in both regions are likely to remain under pressure in the near term. China’s focus on inventory clearance may prolong price volatility unless downstream demand accelerates beyond current projections. In the U.S., macroeconomic headwinds, including inflationary pressures and trade policy uncertainties, could further suppress buyer confidence. Globally, the interplay between fluctuating crude oil prices and evolving industrial demand will be critical in shaping pricing trajectories for White Oil, with market participants expected to maintain conservative strategies until clearer demand signals emerge.