According to sources, ExxonMobil jumped on the bandwagon and revised a majority of its prices this week, with Paulsboro also undertaking similar posted price adjustments.
To many participants consternation, however, it was heard that ExxonMobil would be adjusting some of its cuts by differing amounts, depending on each customers base price.
Some ExxonMobil buyers received notification that the producers Group I solvent neutral 100 would be decreased by 30 cents per gallon, and its SN150 by 25 cents/gal, effective Nov. 10.
Yet a majority of customers were notified of decreases of 41 cents/gal for the suppliers SN100 and 29 cents/gal for its SN150, also effective Nov. 10.
It also seems apparent that a vast majority of buyers would be seeing a 23 cents/gal decrease for ExxonMobils SN300/350, and a 37 cents/gal drop for SN600.
ExxonMobils prices for SN100 and SN150 have been revised down by 41 cents/gal and 29 cents/gal respectively in the table below, but there was no producer confirmation forthcoming.
The producers Group I bright stock, which had been previously marked down 35 cents/gal on Nov. 3, remained unchanged this week.
There seemed to be general agreement as to the amount of the decrease for ExxonMobils Group II+ cuts, which were revised down 25 cents/gal on Nov. 10. The Group II+ price decreases have been reflected in the price table below.
Paulsboro Refining will be moving down its posted prices on Nov. 13. The producer is lowering its VP 100 cut 41 cents/gal, its VP 165 grade 29 cents/gal and its VP 500/700 oils 37 cents/gal. The supplier will leave its bright stock numbers unchanged, following a 35 cents/gal downward adjustment completed on Nov. 5
These price revisions come on the back of a series of reductions by the rest of the paraffinic base oil producers, which led to decreases between 15 to 40 cents per gallon in the Group I segment, 25 to 40 cents in the Group II category, 20 cents in the Group II+ sector, and 20 cents for Group III products, with effective dates ranging from Nov. 3 to Nov. 7.
Meanwhile, on the naphthenic base oils side, Ergon stepped out with a price decrease this week. The producer notified its customers that effective Nov. 14, Ergon would move the price of its naphthenic products down by 25 cents per gallon on light grades and 20 cents per gallon on heavy grades.
There were no movements by other pale oil producer at the time of printing. Previously, a majority of naphthenic producers had lowered prices 15 cents/gal in late October.
Upstream, West Texas Intermediate crude futures remained bearish given signs that global supply is outpacing demand, particularly as U.S. stockpiles continue to mount.
WTI settled on the CME/Nymex at $77.94 per barrel on Nov. 11, up by 75 cents/bbl from a settlement at $77.19/bbl on Nov. 4.
Brent crude was trading around $81.67 per barrel on the CME on Nov. 11, down $1.15/bbl from $82.82/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.