A damaged production train at Petro-Canadas Mississauga, Ontario, base oil plant moved close to resuming normal operations last week, according to market sources. The train, which accounts for half of the plants 12,500-barrels-per-day capacity, had been idled since Jan. 7 due to a fire.
Elsewhere in the market, Flint Hills Resources and ConocoPhillips announcedposted price increases of 10 cents to 17 cents per gallon.
A Petro-Canada spokesman confirmed yesterday that the train started producing again two weeks ago. Market sources said it ran at approximately 80 percent of capacity last week and continues to ramp up from that level.
That train produces Group II stocks and white oils. The other train, which makes Group III stocks, was not affected by the fire and maintained operations while the Group II train was repaired.
Petro-Canada had imposed sales allocations on finished products made with base stocks from the damaged train.In a March 17 letter to customers, obtained by Lube Report, the companysaid it planned to relax those caps this week.
Flint Hills Resources imposed markups ranging from 12 cents to 16 cents last Friday, while ConocoPhillips said it will raise its postings by between 10 cents and 17 cents this coming Friday. The companiesappeared to be catching up to the most recent round of price hikes in the paraffinic side of the market, announced between the end of February and the first week in March. Flint Hills Resources and ConocoPhillipsdid not raise postings at that time for Group II oils made at their50-50 joint venture,Excel Paralubes, presumably because the plant is not producing. The 21,900-b/d facility was completely idled by a Feb. 1 fire.
Crude oil prices on the New York Mercantile Exchange closed yesterday at $62.27per barrel, according to Bloomberg. That was 64 cents lower than a week earlier.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.