Long-awaited stability of crude oil prices appears to have brought the same to the U.S. base oil market.
Posted prices for paraffinic stocks are going on their fifth week without a change – a welcome respite after seven rounds of hikes between February and October. Not surprisingly, the lull has coincided with a calming of crude costs.
The price of crude on the New York Mercantile Exchange closed yesterday at $56.90 per barrel, according to Bloomberg. That is $2.63 lower than a week earlier and down from a record high of $70.85 set Aug. 30.
Crude production in the United States took a hit in the wake of hurricanes Katrina and Rita, but imports have increased to help take up the slack. Moreover, unusually warm weather has kept consumption of heating oil lower than usual, allowing oil stockpiles to build. Wholesale gasoline prices have also dropped – 45 percent from their post-Katrina peak, according to Bloomberg.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.