ExxonMobil announced yesterday that it is raising most of its base oil postings by 5 cents per gallon, effective today. According to sources, the company is not changing its posted price for bright stock.
If normal practice prevails in the paraffinic market, other principal suppliers will raise their own prices in coming days, although none had done so yesterday. Valero said it will raise prices Sept. 2, but it has not yet decided how much. Paraffinic prices had been unchanged for almost seven weeks, but buyers and sellers said the move by ExxonMobil, the markets dominant supplier, was no surprise given recent hikes in crude oil prices.
Crude was down around $25 a barrel the last time prices went up, so margins have really taken a hit since then, one marketer said.I’ve been expecting an increase, and I’m glad it has finally happened.
Crude oil prices topped $30 per barrel last week but have in fact eased the past few days. The price of crude on the New York Mercantile Exchange dropped 45 cents yesterday to close at $28.83 per barrel.
Some sources, while agreeing that crude prices were probably the biggest factor, added that base oil price hikes were possible because of healthy sales, both here and overseas.
Volumes have been firm, Exxon has been exporting, a marketer said. Everything was just lined up for a price increase.
Prices are also rising on the naphthenic side of the market. Valero raised all of its naphthenic postings by 5 cents per gallon Aug. 23.
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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