The pace of price hikes in the paraffinic market has been dizzying recently, with some form of increase taking place each of the past sevenweeks. The size of upward steps, though, has hardly diminished. Citgo, ChevronTexaco, Valero and SK all imposed across-the-board increases of 10 cents per gallon – matching ExxonMobils increase, which Calumet followed last week. Citgo and ChevronTexaco made their increases effective Friday, Valero and SK Monday.

Sunoco did not change the price of its 148 solvent neutral, but added a dime to other products yesterday. ConocoPhillips marked up its Group II offerings by 10 to 13 cents, its Group IIIs by 12 to 15 cents, all effective today. Motiva raised its prices for the third time in six weeks, also effective today. This hike was Motivas biggest of the three, ranging from 10 to 13 cents, sources said. Flint Hills Resources is the only major paraffinic supplier not to raise prices.

Naphthenic base oil suppliers also announced price hikes the past week. Ergon announced an across-the-board increase of 10 cents, effective Friday, April 15, according to market sources. Cross, Calumet and Citgo matched that move withtheir own 10-centmarkups slated for April 18, 22 and 25, respectively. Information regarding other producers was unavailable.

Buyers and even some marketers expressed surprise that the latest round of increases came so close on the heels of earlier markups. Observers said they find it difficult to predict what may happen next. Many cited the volatility of crude oil prices as a factor in the runup of base oil prices, but crude beat a big retreat since the latest round began. The price of crude on the New York Mercantile Exchange closed yesterday at $51.31 per barrel, down $4.46 from a week earlier and $6.97 lower than a record high set April 4.

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