Paraffinic and naphthenic base oil prices rose again in the United States the past week, even as falling crude oil costs offered prospects that the long run-up in base oils may be nearing an end.
Seven paraffinic suppliers joined the round of hikes triggered by Motiva Oct. 25. Citgo, ConocoPhillips, Sunoco, ChevronTexaco and SK all imposed across-the-board increases of 7 cents per gallon on their postedprices, generally in line with the pattern set last week by Motiva, ExxonMobil and Calumet. Citgos changes took effect Oct. 27, ConocoPhillips, Sunocos and SKs on Monday.
Valero, which produces at its plant in Paulsboro, N.J., added 10 cents to its postings, matching ExxonMobils markups on the East Coast. Valero and ExxonMobil are the only two suppliers to post prices on the East Coast.
Flint Hills Resources took a more varied approach – adding 4 cents to its light grades and 6 cents to is 600 neutral but leaving its 200 neutral unchanged.
Naphthenic prices, which have risen even more than paraffinics this year, were also headed upward again, as Calumet and Cross Oil announced hikes of 15 cents.
As usual, suppliers of both types of oils attributed the increases to the year-long rise in crude costs. Crude finally retreated from record levels, however, with prices on the New York Mercantile Exchange falling five straight days to close yesterday at $49.62 per barrel, according to Bloomberg. That marked the lowest price for crude in five weeks.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.