Base oil markets in Europe, the Middle East and Africa are reeling from continuing effects of the coronavirus pandemic. Export prices for API Group I base stocks are coming under the most severe pressure due to complete lack of substantial demand from export destinations, coupled with competing supply, mostly from the United States.
The overall effect is that prices are under pressure since sellers are almost desperate to move base oils due to rising inventories and limited storage. Output has slowed but production rates are still outstripping demand by a factor of around five to one, piling pressure on selling numbers.