No further posted price adjustments were communicated by base oil producers, following a round of decreases that resulted in lower values in the previous weeks. The price revisions were thought to have been prompted by softer crude oil and feedstock prices, slowing demand and growing supply. This week, some attention was focused on transportation and logistics disruptions caused by Hurricane Ian as it wreaked havoc in large portions of the Southeastern U.S. last week.
Over the last three weeks, paraffinic producers informed their customers that they would be reducing postings by 20, 30, 35, 40 and 45 cents per gallon, depending on the grade and the producer, between Sept. 1 and Oct. 1.
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The string of downward adjustments was initiated by Motiva, as the producer communicated 20 cents/gal and 50 cents/gal downward revisions on its base oil grades, effective Sep. 1. Motiva was also expected to start a turnaround at its Port Arthur, Texas, API Group II and Group III facility this month. The supplier has built inventories to continue covering requirements during the outage, according to sources.