27 September 2011 23:59 [Source: ICIS news]
LONDON (ICIS)--European export base oil solvent neutral (SN)150 and SN500 spot prices have declined $30/tonne (€22/tonne) this week because of ongoing sluggish demand, market sources said on Tuesday.
The European group I base oils market remains soft. Dismal economic news and falling crude prices are encouraging hand-to-mouth purchasing, which is exacerbating an already imbalanced supply/demand situation.
Stocks are mounting at refineries and producers are lowering offers in an attempt to move cargoes in a slow market.
Accordingly, group I base oil export prices are sliding. One west European producer conceded it was offering discounts to traders and buyers in a bid to generate some interest.
“Everyone is very cautious,” the producer said. “All the potential buyers are saying ‘let’s wait a bit’.”
In the week ending 27 September, ICIS assessed SN150 and SN500 FOB
($1 = €0.74)
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