Recent talk had suggested that a paraffinic price hike could be on the horizon due to crude oil prices at the $85 to $86 per barrel mark, a level that is considered threatening to operating costs.

The naphthenic price hike of approximately 20 cents per gallon for all grades that was put into play during November has been accepted by all buyers, sellers say. They added that the demand for many grades is still strong while inventories are low.

Meanwhile, there has been heightened buying interest from offshore. Although there is not much surplus available in the U.S., there is some length that suppliers are willing to export. Prices heard are pegged near domestic activity, and sellers remark that there is no need for a fire sale at this time.

In many cases, light neutrals as well as certain heavy cuts are the grades being shipped offshore. Prices associated with this activity are said to be near $900 per ton FOB for light vis, with heavy grades pulling in several hundred dollars more.

There have been several transactions completed in October-November that consisted of both light and heavy grades. Another cargo is expected to load in first half December, and another load to follow in January, said one producer.

In a few other cases, some lots of various neutrals have made their way into the Mexican market at prices equal to domestic.

Pale oils have also been seen leaving the U.S. for the shores of Europe, South America and Mexico. Sources say that much of this activity is considered regular and/or ongoing business, and should not been seen as pure spot transactions given the overall tight naphthenic supply situation.

Looking upstream, crude oil prices bounced in a range of $80 to $88-plus per barrel during November and were very reactive to the indices. Earlier in November when oil prices touched $88+/bbl, it marked a two-year high. However, as the month progressed, futures pricing lost its footing and began dipping lower. By Tuesday, the last day of November, prices slipped below $85/bbl for no apparent reason, analysts said.

At the close of the Tuesday, Nov. 30, NYMEX session, front-month light sweet crude futures ended the day at $84.11 per barrel, a gain of $2.86 compared to the Nov. 23 close at $81.25/bbl.

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