Market sources said yesterday that the company has now reduced its East Coast postings for Group I 100 neutral and 150 neutral by 7 cents per gallon. According to sources, the company said the move was in reaction to competition within the region. Valero operates the only base oil plant on the East Coast, in Paulsboro, N.J., although other suppliers may deliver to the area.

Calumet said recently that it is raising its naphthenic base oil prices, which are not posted. According to sources, this is the first movement of pale oils since Cross Oil raised its prices last August. Market observers said they are watching to see if Ergon – the continents biggest naphthenic supplier – will do likewise. Lube Report was unable to reach Ergon officials yesterday.

There is plenty of oil available, one naphthenic supplier said. There may be some tightness on 60 [vis] and maybe 100, but there are not shortages of heavier grades.

The price of crude oil on the New York Mercantile Exchange closed at $33.96 per barrel yesterday, down 28 cents from a week earlier. Crude prices rose Monday and Tuesday after the Organization of Petroleum Exporting Countries announced it will reduce production quotas by 4.1 percent during the second quarter, when demand normally slows.

The group, which controls half of the worlds oil production, said it is trying to prevent a steep drop in crude prices. According to the Associated Press, the Paris-based International Energy Agency forecast ahead of OPECs decision that global crude supply during the second quarter will exceed demand by twice the normal level.

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