ExxonMobil had previously raised its Group II+ base oils by 20 cents/gal and its bright stock by 10 cents/gal on March 13. Similar bright stock adjustments had been undertaken by Paulsboro, HollyFrontier and Calumet in mid-March. Chevron had also lifted its Group II oils 20 cents per gallon on March 11, with no other postings modified recently.

Revived activity on the spot front and a need to improve margins have prompted suppliers to repeal the steep discounts that had been widely available throughout the last quarter of 2014 for many base oil grades.

The heavy-vis cuts in particular have seen upward spot movements anywhere from a few pennies to two-digit numbers, sources said.

Export prices were also heard to be edging up on renewed buying interest from India, Brazil, and Mexico, with climbing price indications in Asia supporting higher selling ideas into that region.

However, given the quantity of cargoes concluded for March shipment, April availability from the U.S. was said to be dwindling.

Base oil prices have been on an upward trend in Europe as well as in Asia, where reports circulated that a large global refiner with production facilities in Singapore will raise its list prices on April 29.

The producer’s Group I SN500 will be lifted $30 per metric ton and its bright stock $20/t, while its Group II 150N will be increased by $15/t and its 500N by $30/t, according to market sources. The only cut that appears to have been left intact is Group I SN150.

These revisions follow other increases by the same producer on its heavy-vis cuts implemented in Asia on April 11. There was no producer confirmation about the increases.

On the domestic naphthenic front, similarly steady conditions as on the paraffinic side were reported, with most of the pale oil inventories better balanced against demand due to growing buying interest.

Most base oil suppliers continue to pay careful attention to upstream developments. West Texas Intermediate crude values were hovering in the vicinity of $50 per barrel over the week, but some industry experts anticipate oil futures will start to move up on a slowdown in production growth, particularly during the second half of the year.

The shale boom that has led to U.S. record production levels is ending, according to the Energy Information Administration, and the oil rig count fell to the lowest since 2010 last week amid a decline in crude prices, a Bloomberg report said.

WTI futures settled on the CME/Nymex at $53.29 per barrel on April 14, down 69 cents per barrel from a settlement at $53.98 per barrel on April 7.

Brent crude was trading around $58.43 per barrel on the CME on April 14, down 67 cents per barrel from $59.10 per barrel a week ago.

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