Calumet and Paulsboro joined other base oil producers and increased posted base oil prices on the back of firm crude oil and feedstock values this week.
Calumet lifted its API Group I and II paraffinic base oils 325 SUS and lighter by 20 cents per gallon, while its 600 SUS cut and bright stock moved up by 10 cents/gal on May 9.
Paulsboro will be raising its Group I light-viscosity grades by 15 cents/gal, and its heavy cuts by 10 cents/gal on May 17. These increases will not be portrayed in the Price Table below until next week, which is when they go into effect.
According to sources, ExxonMobil increased its Group I and Group II/II+ light and mid-viscosity grades by 15 cents/gal and its heavy-vis cuts and bright stock by 10 cents/gal on May 14. The ExxonMobil postings in the Price Table below have been revised to reflect these changes.
Chevron set the ball rolling in early May, communicating 10 to 20 cent-per- gallon increases for its Group II base oils, citing mounting production costs as the main reason for the initiative.
Other Group II producers, including Excel Paralubes (Phillips 66) and Flint Hills Resources, Petro-Canada, and Avista Oil also lifted postings by 10 to 21 cents per gallon last week.
In the Group I segment, Holly Frontier had raised posted prices by 15 and 20 cents per gallon, depending on the grade, on May 2.
Within the Group II+ tier, Kleen Performance Products boosted all viscosity postings by 20 cents/gal.
On the naphthenic front, rising crude oil costs drove producers to seek price hikes as well, with a snug supply and demand scenario offering additional support. Ergon, Calumet, Cross Oil, and San Joaquin Refining all marked up pale oils by 20 cents/gal between May 2 and May 9.
Upstream, crude oil futures pared losses on Tuesday after President Donald Trump announced that the United States would withdraw from the Iran nuclear deal implemented during President Obamas administration.
Numbers had risen as high as $70.84 per barrel on Monday, and ended the session above $70 per barrel for the first time since November 2014, as the market was concerned about the Iran decision, and about Venezuelas falling oil production.
At the same time, the U.S. Energy Information Administration said on Tuesday in a monthly report that U.S. crude oil output was expected to rise more than previously predicted to around 12 million barrels per day by the fourth quarter of 2019.
West Texas Intermediate futures settled at $69.06 per barrel on the CME/Nymex on Tuesday, May 8, up $1.81/bbl from $67.25/bbl on May 1.
Light Louisiana Sweet crude wholesale spot prices settled at $74.19 per barrel on May 7, compared to $72.06/bbl on April 30, according to the U.S. Energy Information Administration.
Brent settled at $74.85/bbl on the CME on May 8, down 32 cents/bbl from $75.17/bbl on April 30.
Low sulfur vacuum gas oil was at June WTI crude plus $11/bbl ($81.73/bbl) and high sulfur VGO was at crude plus $10.75/bbl ($81.48/bbl) on May 7. By comparison, low sulfur VGO was hovering at $80.32/bbl, and high sulfur VGO at $79.32/bbl on April 30, according to data published by PetroChemWire.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.