Flint Hills Resources announced that the company would be lowering its Group II prices, effective Jan. 21, by 13 to 25 cents/gal, depending on the grade. The producer would be reducing the price of its 70-75HC cut by 13 cents/gal, 100HC by 18 cents/gal, 230HC by 20 cents/gal and 600HC by 25 cents/gal.

Market sources said that ExxonMobil had reduced its Group I prices by 14 cents/gal for its low viscosity grades and 10 cents/gal for its high-vis grades, with an effective date of Jan. 21, while bright stock remained unchanged. The producer also cut its Group II+ prices by 25 cents/gal, with the same implementation date.

Similarly, Paulsboro will be revising its Group I prices down by 14 cents/gal for its low viscosity grades and 10 cents/gal for its high-vis cuts, with an effective date of Jan. 24. No price changes will be sought on bright stock.

Chevron communicated to its customers that the company would be dropping its Group II prices by 25 cents/gal for its 100R and 220R cuts, and by 27 cents/gal for its 600R cut. The decrease will be implemented as of Jan. 22.

Two weeks earlier, Motiva had announced a price reduction of 25 cents/gal for its Group II 105N and 220N cuts, and of 30 cents/gal for its 600N cut, effective Jan. 10.

Phillips 66 also lowered most of its Group II postings by 25 cents/gal, with the exception of the 600N cut, which was reduced by 30 cents/gal. The companys Group III cuts also experienced a 25 cents/gal drop across the board as of Jan. 15.

In the naphthenic segment, demand remained steady overall, with few changes noted in terms of pricing. However, it was heard that Cross Oil had initiated a 25- to 50-cent/gallon increase for its transformer oil, according to market sources, but this could not be confirmed with the supplier. Some participants said it was surprising that the producer would be seeking an increase, but others conjectured that the adjustment was likely undertaken to align prices with prevailing market values.

In other industry news, contrary to reports published in December, Nynas confirmed that the company would remain an active participant in the U.S. market. The company is currently continuing its global expansion and the goal is to sell about 1.1 million tons of naphthenic specialty products (NSP) in 2016, a company source said.

The companys global capacity expansion is possible through the added volumes coming from the takeover of the Harburg refinery in Hamburg, Germany, and the increased capacity at the Nynshamn refinery in Sweden, the source added. The Isla refinery on Curacao continues to contribute significantly to Nynas overall manufacturing capacity as well.

Upstream, WTI crude futures strengthened on signs that demand is growing amid an ongoing economic recovery.

WTI settled on the CME/Nymex at $94.99 per barrel on Tuesday, Jan. 21, up $2.40 from a settlement at $92.59/bbl on Jan. 14.

Brent crude was trading around $106.73 per barrel on the CME, up 34 cents from $106.39/bbl a week ago.

LLS (Light Louisiana Sweet) was trading at a premium to WTI of around $10.60/bbl on Jan. 18, compared with $8.10/bbl on Jan. 14.

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