Base oil prices in the United States are rising, after all, but not just for bright stock. ExxonMobil announced markups for all grades Monday, triggering the third round of general increases since late February.
Industry observers watched the past couple weeks to see if Group I suppliers followed Valeros 10-cent-per-gallon hike for bright stock on June 1. A week passed without any more movements before Citgo announced that it would also add a dime to its bright stock posting, effective June 9.
ExxonMobil changed the game Monday by announcing hikes of 7 cents to 10 cents for all postings, to take effect today. Citgo and Calumet said yesterday that they will match ExxonMobils increases, except that Citgo did not raise its bright stock posting again. Citgos latest changes take effect today, Calumets on June 22. Group II supplier Motiva yesterday announced its own markups – also ranging from 7 cents to 10 cents and effective Friday.
There were no announcements by other suppliers before the end of business yesterday, but there seemed to be little question that more hikes are on the way.
I imagine everyone is going to raise prices, one marketer said. Theyre just making up their minds about how much.
Industry sources said ExxonMobil attributed its action to strong demand, production disruptions, growing U.S. exports and continuing pressure from high alternative fuels margins. Sellers and buyers alike noted that prices for vacuum gas oil feedstock have been high all year and have risen again in the past few weeks.
The price of crude oil on the New York Mercantile Exchange closed yesterday at $55.13 per barrel, up $1.52 from a week ago.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.