ExxonMobil and Phillips 66 each informed customers this week of finished lubricant price cuts that will take effect in early February.
Along with reductions announced by Chevron last month, these are the first finished lubricant markdowns by oil majors since crude oil prices started a steep descent in the second half of last year. Base oil prices have undergone a rapid series of decreases during that time, and lubricant distributors and end-users have clamored for finished products to follow suit. Traditionally finished lubricant prices change less often than base oils, their biggest ingredient.
ExxonMobil sent notice it would decrease prices by up to 3.5 percent on branded and unbranded lubricants and greases effective Feb. 2.
In its letter, the company advised customers it would not decrease aviation product prices at this time. Due to factors impacting the market for aviation lubricants, there will be increases to specific aviation product families effective Feb. 16, the company said in its letter. The aviation lubricant price increases range from $1 per gallon to $2.60/gal on six jet oils and $2.20/gal to $4.75/gal on four aviation hydraulic fluids, and are 30 cents per pound on three aviation greases.
Phillips 66 Lubricants told customers it would decrease posted prices up to 4.5 percent for most of its finished lubricant products effective Feb. 2. In its notice, the company stated it would continue to monitor market conditions.
Chevron notified U.S. customers Dec. 19 that prices for its branded finished lubricants, gear oils and greases will generally decrease by up to 3.5 percent effective Feb. 6 for most SKUs.