ExxonMobil imposed allocations last week on one of the Group II-plus base stocks produced at its plant in Baytown, Texas. A source outside the company said ExxonMobil attributed its action to an equipment problem and said it did not yet know how long it would take to repair.
The source, who spoke on condition of anonymity, said ExxonMobil distributed a statement Thursday and Friday telling customers that it was implementing an 80-percent allocation, effective immediately, on EHC 45.
ExxonMobil officials could not be reached for comment yesterday afternoon.
According to the source, ExxonMobil said it was forced to act after shutting down part of the plant in order to assess damage in a vacuum distillation unit that has not been operating optimally. The distillation unit takes several days to cool, so the company did not expect to know the extent of the problem until later this week. Depending on its findings and the time needed for repairs, ExxonMobil reportedly cautioned that it might have to deepen the allocations on EHC 45 or extend the limits to other stocks.
Posted prices in the United States for paraffinic base oils were unchanged again this week. The cost of crude oil on the New York Mercantile Exchange closed yesterday at $73.81 per barrel, Bloomberg reported. That was 32 cents lower than the price a week earlier.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.