Several naphthenic base oil producers have communicated price increases, driven by rising crude oil and feedstock prices, together with a tightening supply/demand scenario. On the paraffinic side, producers were feeling the squeeze of higher feedstock costs too, but lukewarm demand and ample inventories were partly diluting the pressure.
Late last week, Cross Oil informed its customers that the company would be increasing the price on all grades of naphthenic base oils by 25 cents per gallon, with an effective date of Feb. 11. “This increase is being driven by market factors including increases in crude oil, natural gas, and continued inflationary pressure on other inputs,” the company explained.
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