During Quarter 4 heating oil, crude, and gasoline continue to rebound off pandemic lows.
Positive vaccine news for coronavirus and optimism about 2021 are driving the market up. While there are new shutdowns occurring and cases of coronavirus spiking, traders our focused toward the future.
OPEC + will be discussing keeping cuts or weighing options of a production increase. This news could help influence the market, but most likely minimal compared to other driving forces.
The results of the presidential election and a smooth transition of power are setting up for a rebound in crude, heating oil, and gasoline prices in 2021.
Most of the lubricant industry has already seen price increases since the start of the pandemic in March. These prices were held by blenders and finished lubricant suppliers during the onset of Covid-19. Base oil prices dipped only momentarily and continued to increase throughout the year. Due to rising cost, suppliers were not able to maintain prices. They have also cited an increase in transportation cost, additive and a rebound in crude oil making finished lubricants more expensive.