To many participants surprise, Motiva spearheaded a fresh round of API Group II posted price decreases this week. Phillips 66, Flint Hills Resources, Chevron and Calumet followed close on Motivas heels and reduced prices as well.
This new string of paraffinic price reductions comes on the back of a previous chain of price cuts, which were completed on Oct. 13, and were similarly induced by plentiful supply, languid demand, and volatile crude oil and feedstock costs.
Motiva communicated that the company would be decreasing prices of its Group II 100 and 220 cuts by 25 cents per gallon, while its 600 grade would be reduced by 40 cents/gal, with an effective date of Nov. 3.
Phillips 66 also lowered its Group II prices by similar amounts on the same date, resulting in a price of $3.15/gal for its 70 and 80N cuts, $3.05 for its 110N oil, $3.25/gal for its 225N oil and $3.45/gal for its 600N grade.
Likewise, Flint Hills Resources revised its 70/75HC, 100 HC and 230HC oils down by 25 cents/gal, and its 600HC cut by 40 cents/gal, with the adjustments being implemented on Nov. 4.
Chevron will reduce its 100R and 220R cuts by 25 cents/gal, while its 600R grade will be marked down by 40 cents/gal on Nov. 5, to reflect the current supply/demand balance and market conditions, the producer explained.
Calumet will decrease prices on all of its paraffinic oils, including its Group II 80, 100, 150 and 325 vis cuts by 25 cents/gal, effective Nov. 7.
Within the Group I segment, ExxonMobil was heard to have cut bright stock prices by 35 cents/gal on Nov. 3, while Paulsboro will adjust its bright stock down by the same amount on Nov. 5.
HollyFrontier reduced its SN70 through SN 250 cuts 25 cents/gal, its SN 525 grade 40 cents/gal, and its bright stock 15 cents/gal, effective Nov. 3.
Calumet will be moving down its Group I 600 cut by 40 cents/gal, while its bright stock will be decreased 25 cents/gal on Nov. 7.
In the Group II+ segment, Phillips 66 marked down its Ultra S2 and S3 by 20 cents/gal on Nov. 3, with SK lowering its prices by the same amount on Nov. 5.
According to market sources, ExxonMobil was considering adjustments on some of its Group I and Group II+ cuts, but further details were not forthcoming by deadline.
Within the Group III category, Phillips 66 and SK are moving prices down 20 cents/gal on Nov. 3 and Nov. 5 respectively.
On the naphthenic front, no price changes were heard, following recent downward adjustments of 15 cents/gal from a majority of producers, with the round of adjustments completed on Oct. 28.
Upstream, West Texas Intermediate crude futures fell to the mid-$70s per barrel, a three-year low as Saudi Arabia reduced prices for exports to the United States on expectations that crude demand will slow down and stockpiles will continue to grow.
WTI settled on the CME/Nymex at $77.19 per barrel on Nov. 4, down by $4.23/bbl from a settlement at $81.42/bbl on Oct. 28.
Brent crude was trading around $82.82 per barrel on the CME on Nov. 4, down $3.21/bbl from $86.03/bbl a week ago.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.