U.S. Base Oil Price Report

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HollyFrontier and Chevron joined the circle of paraffinic producers raising prices in June, and on the naphthenic side, Cross Oil stepped out with an increase on its heavy pale oils.

HollyFrontier started the week off by lifting the posted prices of its API Group I SN 525 and bright stock 10 cents per gallon on June 22.

Last week, Paulsboro had also communicated its intentions of raising postings on its Group I 600 cut and bright stock by 10 cents/gal, with an effective date of June 24. The price table below has been revised to reflect the hike this week.

Also on June 24, Chevron will be increasing the price of its Group II 600R cut 15 cents/gal to $3.15/gal. The price revision will be undertaken to reflect the current supply/demand balance and market conditions, a company source explained.

These increases follow price adjustments by Motiva, Phillips 66, and Flint Hills Resources within the Group II segment, and ExxonMobil in the Group I category, implemented between June 5 and June 19. There have been no adjustments for the Group II+ or Group III oils.

On the naphthenic front, Cross Oil mentioned that it is planning to adjust pricing up on its heavy base oils, including pale oil 1200 and above, by 20 cents/gal as of July 1.

Other naphthenic base oil producers were heard to be mulling price adjustments, but no further changes surfaced this week.

Aside from a tightening of the heavy-viscosity grades, the increases were fueled by volatile crude oil values and expectations that crude would continue to hover close to current price levels in coming weeks.

West Texas Intermediate futures settled near a two-week high on Tuesday, on speculation that the weekly Energy Information Administration report would show that U.S. crude supplies have dropped. Additionally, a U.S. plan to help Europe defend against security threats appeared to underscore U.S. tensions with Russia, one of the world’s biggest oil producers.

The price of WTI on the CME/Nymex settled at $61.01 per barrel on June 23, up $1.04 per barrel from its June 16 settlement of $59.97 per barrel.

Brent crude was trading around $64.45 per barrel on the CME on June 23, up $1.82 from $62.63 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.

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