PAO values in the US firmed in early March as feedstock inflation and geopolitical risk encouraged buyers to lock in volumes ahead of volatility. After a largely flat late February, downstream procurement shifted toward pre-season stocking and pre-summer lubricant intake. PAO domestic supply remained broadly adequate with Gulf Coast operations normal, yet sentiment tilted toward sellers as energy costs rose and export inquiries weighed on the market. The balance favored sellers in the opening weeks, tightening spot availability and drawing interest from automotive and industrial lubricant buyers. Demand remained steady across core sectors, supporting a modest price rise for PAO. Automotive firms continued sourcing for advanced engine oils and lubricant base stocks; industrial machinery and wind turbine operators kept purchasing heavy-duty synthetics. Export activity to Latin America absorbed volumes, underpinning sentiment. February assessments showed PAO at elevated levels, reflecting vendor-side push to shield margins against rising feedstock spends. Upstream cost pressures, including ethylene and natural gas constraints, added to PAO production costs.
