Spot prices for Base oils have been surging for both the groups since past few months. Shortage in the supply is the major reason for this hike. The crunch is the supply is due to production issues. The major supplier US has also depleted its supplies as production was hard hitted last year due to Harvey hurricane. Major Group I units were largely stable in their production, but as availability of Group II stocks was short, demand for Group I cargoes grew among buyers who could use both Group I and II base oils for their downstream purpose. The experts believe that scenario is likely to remain same till Lunar holidays in China.
