White oil markets diverged in early June, with China's prices briefly rising and stabilizing, while U.S. prices dipped slightly. Both faced weak demand, steady supply, and were influenced by crude oil trends and seasonal factors.
White oil markets in China and the United States went in different directions during early June 2025, with Chinese prices jumping up briefly before settling down while American prices stayed flat at first then dropped a bit.
The market sentiment was impacted by seasonal patterns, global crude oil dynamics, and cautious downstream activities. Both markets were able to maintain sufficient supply levels aided by improved logistics and effective refinery operations, but demand for White oil was nevertheless constrained because of low consumption in major downstream industries.
Chinese White oil markets saw a short price bounce of 0.2% at the start of June before settling back into balance as the month went by, reflecting the interplay between improving global crude oil fundamentals and tempered domestic demand conditions.
The initial price pressure was the result of firmer international crude benchmarks, driven partly by renewed U.S.-China trade optimism and inventory drawdowns. Domestic production returned to normal following the Dragon Boat Festival holiday period, ensuring consistent supply availability without operational disruptions.
Demand dynamics for White oil, however, remained lacklustre, especially in the lubricant segment where consumption patterns were undermined by seasonal developments such as monsoon weather in Southeast Asian markets and the end of China's peak consumption cycle. Downstream purchasers implemented defensive purchasing tactics, depending on pre-assembled stocks while blenders postponed high-volume deals in hopes of fresh new capacity additions.
The United States White oil market demonstrated initial price stability before experiencing marginal declines as June progressed, despite upstream crude oil price increases that typically exert cost-side pressure on refined products.
U.S. Energy Information Administration figures showed crude oil supplies dropped by 3.6 million barrels, but this drop was expected and didn't create any shortage problems since there was still plenty of oil available for making White oil products.
Since manufacturers had already finished their seasonal stockpiling activities and were dealing with muted consumer spending patterns due to ongoing inflationary pressures, demand fundamentals for White oil in the cosmetic and personal care segments showed stable but unimpressive performance.
Market tone for the rest of June points toward ongoing price stabilization in both regions as players wait for more defined demand signals and respond to changing macroeconomic fundamentals. Chinese White oil market is vulnerable to headwinds from further increases in production capacity and continued lubricant demand weakness.
Whereas White oil prices in U.S are set up for potential volatility as hurricane season gets underway, with traders weighing precautionary inventory needs against uncertainties surrounding consumer spending. Both markets will also continue to be responsive to crude oil prices and geopolitical events.
