US base oil prices eased by 2.4% in the third week of January 2026 as oversupply weighed on the market amidst temporary supply disruptions. Trading activity was light as it was further dampened by the Martin Luther King Jr. federal holiday. Although weather disruption and a refinery maintenance reduced supplies locally, enough base oil stocks were available to keep the supply in check. The value of feedstock crude oil had turned around in recent weeks, but refiners could not increase prices to match higher costs because of weak lubricant sales and buyers who were cautious. The opening of a new US Lubricants distribution depot in the Philadelphia area highlighted longer-term confidence in the lubricants sector, but had minimal short-term impact. In general, the fall in base oil prices represented a demand-driven weakness rather than a tightness in supply.
Key Highlights
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US base oil prices eased in mid-January due to subdued demand despite localized supply disruptions.
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Refinery outages were short-lived and offset by ample base oil domestic inventories.
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The Martin Luther King Jr. holiday further slowed trading activity and buying interest.
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Rebounding crude oil values failed to support base oil pricing amid weak lubricant demand.
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US Lubricants expanded distribution capacity with a new Philadelphia-area depot, signaling longer-term growth confidence for base oil.
US base oil prices followed a falling trajectory at a rate of x.xx in the third week of January xxxx, as persistent weak demand conditions more than offset temporary supply-side disturbances. The pace of market activity was moderate, as Martin Luther King Jr. federal holiday on January xx shortened the trading week and postponed buying decisions.
Although there were...
