Activity has not let up significantly in the United States market despite the summer holidays, with most base stocks seen as hot commodities pursued by anxious buyers, many of whom have had to cut back downstream manufacturing rates due to a shortage of certain grades and additives.

However, the supply of a number of base oils has started to improve – namely the light viscosity cuts, which had been slightly less tight than their mid-and high viscosity counterparts. “The light grades are starting to come to a more balanced state. They are definitely far from long, but are much improved from where they were a few months ago,” a source noted. The fact that at least two API Group II U.S. Gulf producers have offered light viscosity cargoes for export was a sign that that segment was starting to lengthen. These cargoes were heard to be heading to India. Export opportunities helped suppliers keep the domestic market from getting oversupplied. READ MORE