Although the likelihood was mentioned a week earlier that Cross Oil would follow Ergon, Inc., and Calumet Specialty Products Partners, Inc., in increasing prices, the company detailed its pricing initiative more specifically this week. The company said it would boost pale oil prices by 16 cents per gallon effective Friday, Oct. 12.
San Joaquin Refining, meanwhile, also indicated that it would most likely follow the other naphthenic producers’ price moves, although it has not divulged details. Sources indicated that the West Coast refiner is expected to step out within a week or two to reveal an amount and effective date.
Nynas has said it was not entertaining joining in on this round of price moves.
Ergon upped its line of pale oils by 16 cents/gal on Friday, Oct. 5. Calumet will alter its pale oil prices by plus 15 cents on Thursday, Oct. 11.
On the back of recently announced API Group I posting hikes, along with a more fresh naphthenic price moves, overall business is described as low key in terms of concluded trade. However, both sides of the market note that there is a positive outlook for the coming weeks, and business will tick upward before slowing ahead of the yearend holidays.
Meanwhile, domestic paraffinic posted prices held steady again this week. There still has been no attempt by Group II and III producers to elevate posted prices. Some players believe that these two sectors have been particularly quiet regarding upping postings because there has been ample availability to cover all necessary customer requirements during the past few months.
Nevertheless, some market observers suspect that Group II/III suppliers’ inventory positions may now be approaching low levels, and that they may be considering a price hike. But so far, fresh price news out of these premium sectors has been mute.
At the close of the Tuesday, Oct. 9, CME/Nymex session, front month light sweet crude oil futures ended the day at $92.39/barrel, a gain of 50 cents/bbl from last weeks settlement at $91.89, but up $3/bbl from the Monday settlement at $89.33. The leap in futures values was linked to a growing tight supply situation out of the North Sea.
Brent Crude was trading at $114.42/bbl at the end of the day yesterday, a gain of $2.87/bbl from its week-ago level of $111.55. LLS (Light Louisiana Sweet) crude was trading at a premium of about $20.50/bbl to WTI on Tuesday.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.