Crude oil prices dropped further over the past week, butthe threat of protracted warin Iraq raised concerns that the recent reprieve could be short-lived.
The price of crude on the New York Mercantile Exchange dropped 69 cents yesterday to close at $27.97 per barrel, down $3.70 fromthe same day last week and more than 25 percent lower than the peak earlier this month.
Some analysts warned, however, that prices could climb again if the American- and British-led war on Iraq drags on too long. Concerns arose after U.S. Defense Secretary Donald Rumsfeld said yesterday that the conflict could last for weeks or months.
The drop-off in crude costs has fluffed up margins for base oil refiners, but observers have cautioned that it could take several weeks for those savings to be passed on to base oil purchasers — partly because of normal lags in price changes, partly because of uncertainty about where crude was headed. This week’s events offered evidence that crude prices remain volatile.
Posted prices for U.S. paraffinic base oils were unchanged this week.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.
|