Within the same Group II tier, Phillips 66 will raise the posted price of its Pure Performance 70N and 80N grades 18 cents/gal, its 110N oil 15 cents/gal, its 225N cut 17 cents/gal, and its 600 vis grade 10 cents/gal, effective March 9.

Phillips 66 will also be increasing its Group II+/III offerings, but with a different implementation date than the Group II adjustments. The producers S2 cut will move up 23 cents/gal, its S3 and S4 grades 17 cents/gal, and its S8 oil by 23 cents/gal, with the hikes going into effect on March 8.

Calumet communicated that it will lift its Group I and II oils by 15 cents/gal across the board on March 13.

Sources also said that ExxonMobil would implement price increases on March 9. The producers Group I light and mid-viscosity grades will be marked up 12 cents/gal, and its heavy grade and bright stock 15 cents/gal.

ExxonMobils Group II and II+ cuts were also expected to be raised 12 cents/gal on the same date.

Avista Oil also announced that it would increase its Group II base oil posted price by 15 cents/gal and its Group III cut by 20 cents/gal, effective March 13.

Some market participants commented that it was not surprising to see producers seeking price hikes, as spot indications had already been on the rise, given a tightening supply and demand scenario, although not all segments of the market appeared snug. This situation is the result of current and imminent turnarounds in the United States.

The Excel Paralubes plant in Westlake, Louisiana, was taken off line for a routine turnaround on March 1. The unit has capacity of 22,200 barrels per day of Group II base oils and production is jointly marketed by Phillips 66 and Flint Hills Resources.

Chevron is also preparing for a turnaround at its Pascagoula, Mississippi, plant. The unit, which can produce 25,000 b/d Group II base oils, is anticipated to be shut down for approximately one month in April, instead of March as previously reported.

There was no producer confirmation forthcoming about the turnarounds.

Avista Oil was expected to restart its rerefinery in Peachtree City, Georgia, on March 6, following a two-week turnaround. The rerefinery has an output of 1,200 barrels per day of API Group II and 400 b/d of Group III oils.

Further down the road, in June, Motiva was heard to be planning to take one of its three base oil trains off-line for maintenance. The producer was anticipated to build inventories ahead of the turnaround so as to meet contractual obligations during the outage.

Aside from a tightening balance on the domestic front, flourishing exports have also contributed to a reduction in base oil availability.

Sources noted that Mexican buyers had shown buying interest for Group I oils, given production hiccups at the local producers plant, and there has also been healthy demand from other regions, particularly Europe.

On the naphthenic side of the business, there were no price changes announced this week, but producers were watching market developments closely as some of them believe a price revision is due as margins have eroded in recent weeks.

There were unconfirmed reports that Cross Oil had shut down its naphthenic base oil plant in Smackover, Ark., for a two-week turnaround last week. The plant has a nameplate capacity of 5,000 b/d.

Upstream, crude oil futures slipped as the U.S. Energy Information Administration raised its forecast of U.S. crude oil production for 2017 and 2018.

At the same time, OPEC Secretary General Mohammad Sanusi Barkindo said on Tuesday that data suggests that oil exporters were complying with the output cuts agreed in November, and that the reductions were higher in February compared to January.

Irans output reached 3 million barrels a day for the first time since the 1979 Islamic Revolution this week, but the country received an exemption from output cuts, as it is still recovering from sanctions.

West Texas Intermediate futures on the CME/Nymex settled at $53.14 per barrel on March 7, down 87 cents from the Feb. 28 settlement of $54.01/bbl.

Light Louisiana Sweet wholesale spot prices closed at $54.94/barrel on March 6, down from $55.52/bbl on Feb. 27, according to data from the U.S. Energy Information Administration.

Brent was trading at $55.92/bbl on the CME on March 7, up 33 cents from $55.59/bbl on Feb. 28.

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