Global base oils - week of April 10: Demand outlook

·        Crude oil prices rebound from start of April after OPEC+ announces production cut.

·        But crude prices hold in narrow range after rebounding at start of last week – staying within price-band in place since mid-November.

·        Prospect of tighter crude oil supply, high interest rates and slowing economic growth complicate crude oil price outlook and lube blenders’ procurement plans.

·        Higher crude oil prices and seasonal rise in lube demand should support higher base oils prices.

·        Prospect of higher base oils prices typically adds to pick-up in demand.

·        But buyers show signs of maintaining strategy of procuring smaller volumes more regularly.

·        Strategy points to expectations of sufficient supply as and when buyers require additional volumes.