US Lubricant Market Conditions

Dear Valued Allied Customer:

Like many companies, Allied’s lubricants distribution business is facing supply challenges due to the raw material supply issues of many petrochemical companies and the ongoing driver and truck/container shortages in 2021.

Base oil suppliers were unavoidable casualties of the Covid-19 pandemic, along with the Texas Freeze, which have unfortunately forced a 20 percent increase in consumer demand causing ongoing constraints to bottleneck the market. Additive suppliers were also impacted and implemented purchase limits as they began to experience raw material issues. Expectations are that the overall market will remain tight due to this planned downtime which is holding true.

To manage this situation, many of the major industry providers have adjusted open orders for affected products and will continue to do so until the market corrects itself. Overall, Allied is very well positioned with our primary products for customers due to pre-planning from our Purchasing and Operations teams. We will continue to provide transparent updates as we work collaboratively with our suppliers to maintain a high‐level of customer service.

Allied’s objective is to always service our Customers in a fair and mutually beneficial manner. Allied will do our best to accomplish this goal for a sustainable relationship. We don’t like Price Increases that put our relationship at risk, especially for a product that is volatile enough for competitors to “guarantee” a price today knowing it will fall at some point soon when we are reaching record price levels. Know that as prices do fall, we will be adjusting accordingly. As stated, our goal is to maintain a sustainable relationship.

Should you have specific questions or inquiries, please contact your Allied Account Manager or Customer Service Representative. Our main phone number is 402-344-4343.


Steve Phillips


Allied Oil & Supply