Valero confirmed last week that it joined the latest round of price hikes in the United States for paraffinic base oils. TheEast Coast producer imposed an across-the-board increase of 10 cents per gallon on straight cuts on April 24, in line with markups made by other suppliers beginning the previous week.
Valeros move completes the third round of hikes this year. Across the market the size of changes ranged from 8 cents to 15 cents per gallon. Valeros Paulsboro, N.J., plant does not make straight cuts of oils with intermediate viscosities, but it noted that prices for some blended oils in that range underwent markups of 15 cents per gallon.
Suppliers attributed the latest increases to escalating crude oil costs and to tight demand. Crude remained elevated this week, as prices on the New York Mercantile Exchange closed yesterday at $74.90 per barrel, according to Bloomberg. That was $2.15 above the level a week ago.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.