Although anticipating their suppliers plans to push up prices, many customers were taken aback at the sizes of some of the hikes, as detailed below.

Last Friday, April 23, ConocoPhillips raised all its API Group II paraffinic grades by 20 cents/gal. The company confirmed that all Ultra-S Group II+ and Group III postings will go up by 20 cents/gal as well. ConocoPhillips markets S-Oils Group II+ and III oils in North America.

Direct buyers said that ExxonMobil also jumped on the band wagon with plans to lift its Group I American Core grades effective yesterday, April 27. According to these customers, ExxonMobil boosted all Group I postings by 20 cents/gal. The EHC 45 (110-130 vis) Group II+ will go up 15 cents/gal, while ExxonMobil’s EHC 60 (190 vis) Group II+ posting is up 20 cents/gal.

Motiva upped its Group II and II+ postings for paraffinic neutrals today, April 28. Star 3 (70 vis) bounced up by 40 cents/gal, Star 4 (110 vis) and Star 6 (220 vis) were raised by 45 cents/gal, while Star 12 (600 vis) was hoisted 50 cents/gal. In the Group II+ category, Star 5+ was pulled higher by 30 cents/gal.

Also today, April 28, SK pushed up its API Group II+ Yubase 3 cSt by 22 cents/gal, while shifting other Group III and III+ base stocks 20 cents/gal higher.

On Thursday, April 29, Calumet will raise its Group I and Group II posted prices by 20 cents/gal across the board.

Holly said it will amend its Group I paraffinic grades on Friday, April 30, by adding 20 cents to the 70 through 250 vis grades, while bumping up 500 vis and bright stock by 35 cents/gal.

Valero said it will follow suit and adjust posted prices upward on April 30, although the specific adjustments could not be verified at press time.

Sources from the sell side as well as the buy side say that these price moves were based on rising feedstock costs as well as much improved demand alongside tightening availability.

Only a month ago, buyers were saying that light vis grades (100 through 300 neutrals) were readily available, but now that is not necessarily the case. In fact, it seems that a few domestic buyers have turned to Europe seeking SN 150 supply, at least. A few cargoes are reportedly scheduled to arrive in the United States in coming weeks.

Looking upstream, crude oil values have been fairly volatile this month, vacillating between a high of $87 per barrel and a low of around $81/bbl. Energy experts admit that the fickle futures market has been headline driven while searching for direction, which it cannot seem to find.

Most recently, however, oil values slipped as energy traders wait to see whether the Federal Reserve will keep interest rates at record lows that have helped keep crude prices up. It is suspected that once the Fed wraps up its two-day meeting today (Wednesday), the key bank lending rate will remain between zero and 0.25 percent, where it has been since December 2008.

Some analysts wonder whether the Fed will talk about taking steps to reduce the unprecedented amount of money it pumped out to fight the Great Recession. Even though the economy has improved, unemployment remains near double digits and is expected to stay high all year.

At the close of the Tuesday, April 27, NYMEX session, front-month light sweet crude futures ended the day at $82.44 per barrel, shedding $1.01/bbl from the April 20 close at $83.45.

Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.