The US Base Oil market exhibited unexpected stability in early August xxxx, despite a potential disruption associated with price fluctuations. While the industry grappled with the aftermath of Hurricane Beryl, which caused minor supply chain disruptions, the market demonstrated resilience in the face of both bullish and bearish pressures. Traditionally, the summer months bring about a decline in demand for Base Oils, coinciding with a reduction in crude oil prices, which would normally exert downward pressure on prices. However, this year&#xx;s market dynamics diverged from this historical pattern.
On the supply side, a combination of factors contributed to a tight market scenario. To prepare for the hurricane season, industry participants had built up inventory levels, which limited available supply. Moreover, unforeseen production outages exacerbated the situation, further tightening the market. Despite the recent downturn in crude oil prices, Base Oil producers maintained their price levels, taking advantage...
