The US White Oil Prices Stabilizes in January 2024, Outlook Sounds Bullish
The US White Oil Prices Stabilizes in January 2024, Outlook Sounds Bullish

The US White Oil Prices Stabilizes in January 2024, Outlook Sounds Bullish

  • 24-Jan-2024 3:46 PM
  • Journalist: Patrick Knight

Prices of White Oil have continued their stable trend across the US market throughout the first half of January 2024 despite prices of upstream Crude Oil increasing by approximately 1.5% at the same time, which was expected to increase production costs. However, the stabilization in the prices of White Oil was largely attributed to maintenance of an adequate gap between demand and supply which prevented the prices of the product from fluctuating.

On the demand side, the demand of White Oil from the cosmetics and skincare industry was recorded to be moderate despite the present dullness continuing to prevail across the US market and a low international trade as freight charges to US East Coat from East Asia declined by approximately 20%.  Easing of restrictions by the Panama Canal Authority was also recorded as evidenced by increase in the number of daily transits to 24 starting from 22 during January 2024 as water levels showed some improvement. Another factor considered for the constant demand of White Oil was largely attributed to abnormal weather patterns across the United States which kept the demand of White Oil afloat. According to NOAA (National Oceanic and Atmospheric Administration), the temperature across the United States outlook favors well above normal temperatures across the Northeast and around the Great Lakes and well below average temperatures in the Southwest and central and northern Great Plains, which kept the demand of White Oil persistent from the skincare and cosmetic industry.

On the supply side, the shipments of White Oil were recorded to have moderated as the restrictions across the Panama Canal eased, which consequently led abundant inventories being circulated in the US market. However, cautious trading activity largely prevailed amongst US traders as the overall market of White Oil continued to suffer from dullness after the termination of festive holidays and inflated freight charges also slowed international demand from the Asian market.

Prices of White Oil are expected to appreciate marginally towards the termination of January 2024 largely attributed to the high demand from the skincare industry despite prices of Crude Oil expected to remain bullish in January 2024 as attacks in the Red Sea intensify which is expected to drive up production costs. Moreover, in January 2024 the demand of White Oil from the downstream cosmetic and skincare is also not expected to witness moderate market, as purchasing activities increased largely compelled deteriorating weather conditions across the United States.

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