The US White Oil (cosmetic grade) market witnessed a marginally bearish situation at the beginning of the second week of November which was primarily due to depreciation in the global crude oil prices. The current market for White Oil (cosmetic grade) was primarily driven by constant consumer demand amidst depreciating prices of upstream Crude Oil which eased production costs.

The White Oil Prices eased slightly by around 0.4% for cosmetic grade in the first half of November mainly due to depreciating prices of Crude Oil which declined by approximately 5.8% in the second week of November, which eased production costs in exporter China. The constant demand from the downstream skincare and pharmaceutical industries largely prevented the market situation from witnessing a sharp decline. The prime reason for the strong demand for White Oil (cosmetic grade) was abnormal climate patterns owing to the effects of El Nino which induced anomaly in temperature readings across the United States. According to NOAA and CPC, the winter outlook is expected to be colder and dryer than usual with high levels of snowfall being expected in the northern regions. Temperatures across the Northern and Central parts of the United States continued to plummet at abnormal rates which compelled the local populace to increase purchasing activities in the downstream skincare industries.

Despite the high demand, the prices of White Oil (cosmetic grade) showed a marginal bearish trend primarily due to the depreciating prices of Crude Oil, due to the relief of sanctions on Venezuelan Crude Oil. Current demand for White Oil (cosmetic grade) proved insufficient to maintain stability in the prices, which witnessed a depreciation after remaining stable for approximately 5 weeks. Current economic indicators also convey a positive outlook with inflation rates declining to 3.7% in November, according to FRED, and industrial output also witnessing an increment for the fifth consecutive month. Purchasing sentiments amongst the local populace are also expected to improve due to the upcoming festive holidays of 2023.

Furthermore, the current outlook of December 2023 for the market situation of White Oil (cosmetic grade) primarily depends on the market situation of upstream Crude Oil and the purchasing sentiments of the local populace which are expected to remain positive owing to the colder climate and festive holidays. Improved purchasing sentiments are likely to cause an uptick in the prices of White Oil (cosmetic grade) as the demand from the downstream skincare industry gains momentum.