The global base oils market is projected to undergo a lengthy recovery phase, according to Michael Connolly, ICIS head of refining and base oils analytics. This extended timeline is attributed to a combination of persistent supply constraints and evolving geopolitical tensions that continue to reshape the industry landscape. The situation is particularly acute for Group III base oils, where the recovery is expected to be significantly longer due to deep-seated structural disruptions.
For freight forwarders and operations managers, this implies potential volatility and increased lead times for shipments involving base oils, especially Group III. Shippers may experience higher costs and reduced availability, necessitating proactive planning and diversification of sourcing strategies. The ongoing geopolitical factors, even with the reopening of the Strait of Hormuz, suggest that supply chain stability for these products remains fragile, impacting global trade flows and potentially requiring alternative routing or inventory adjustments.
