U.S. base oil suppliers appear to have received an early holiday present in recent weeks: unusually attractive prices for export.
Export prices are especially buoyant for bright stock – with the discount from domestic sales about half of what it was a year ago – but are also good for other grades.
I think its an aberration, but its a nice little surprise that were glad to take advantage of, one marketer said.
Sellers seemed to agree that the gift came from Europe, which is normally the worlds biggest base oil exporter but which is now experiencing tight supply. Availability in Europe was said to be pinched because of production problems during the summer and because it is now entering its season for maintenance turnarounds. Moreover, European stocks are being pulled to Asia-Pacific, which is also tight.
The situation is allowing American suppliers to make some lucrative year-end sales. Benefits also extend to domestic business, insofar as there is no prospect of European imports to restrain U.S. prices.
If there is a hole in the international market, that tells me there arent barrels on the docks in Europe waiting to come here, a marketer said. That means I dont have to be looking over my shoulder.
Posted prices in the United States were unchanged this week. The price of crude oil on the New York Mercantile Exchange closed at $33.01 per barrel yesterday, $1.10 higher than a week earlier.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.