Another week brought more price hikes in the U.S. base oil market. Group III supplier SK Corp. weighed in with markups of 5 cents per gallon, across the board. Naphthenic supplier Cross Oil announced its second increase in less than three weeks, this time a whopping 10 to 12 cents.
Base oil prices have risen steadily this year, but SK and fellow South Korean refiner S-Oil – the only companies posting Group III prices – had sat out the last two rounds of increases. SK finally moved Monday, announcing markups that take effect tomorrow. The company cited rising costs, along with higher costs for competing products, presumably Group II-plus base oils.
Cross also cited rising raw materials costs in its announcement Friday of changes that take effect Aug. 23. The companys most recent increase came Aug. 5, when it raised prices by 5 to 7 cents per gallon.
Market observers said there seems to still be upward pressure on prices, largely because crude costs are still going up. Crude set another record this week, as the price on the New York Mercantile Exchange topped $46 per barrel for the first time. The price closed yesterday at $46.26, $1.84 higher than a week ago.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.