The paraffinic posted price increases communicated by a vast majority of base oil producers and rerefiners over the last two weeks have now been implemented. The mark-ups were triggered by skyrocketing crude oil and feedstock prices, coupled with a tighter supply and demand balance. It was still too early to ascertain whether the steeper base oil prices would have an impact on demand. On the naphthenic base oils side, producers also raised prices, driven by similar market fundamentals.
The initiatives lifted most API Group I prices by 20 cents per gallon, with the exception of bright stock, which producers left unchanged. Group II prices were generally raised by 15 cents/gal, 25 cents/gal, 30 cents/gal; and Group II+/Group III prices by 15 cents/gal, 20 cents/gal and 30 cents/gal, with all the increases going into effect between Sept. 15 and Sept. 25.