Base Oil Price Report


Two more U.S. paraffinic base oil producers joined a round of price hikes begun last week, though most Group II suppliers did not – at least not yet.

On the naphthenic side of the market all U.S. suppliers joined a new round of increases. In addition, Nynas said Valeros plant in Three Rivers, Texas, will close for four days later this week.

Calumet and Sunoco both announced across-the-board increases of 15 cents per gallon on posted paraffinic prices, in line with moves last week by ExxonMobil and Citgo. Calumets took effect Monday, Sunocos today.

Calumet produces Group I and Group II stocks and applied its increase to all products. Otherwise, however, the current round of hikes has touched Group I oils only. Group II suppliers Motiva, ConocoPhillips and Flint Hills Resources reported no changes before the close of business yesterday, and Chevron customers said they had not received notice of any increase. Likewise, there were no announcements yet from Group III importer SK Corp. or from Valero, which makes mostly Group I oils.

Among U.S. naphthenic producers, Ergon said it will impose markups ranging from 15 cents to 22 cents per gallon, effective next Monday. Citgo and Nynas are going up 20 cents across the board Aug. 17 and 21, respectively. Calumet is raising its naphthenic prices 15 cents Aug. 17, Cross Refining between 15 cents and 20 cents a day later and San Joaquin Refining 15 cents on Aug. 15.

Nynas, which sells oils produced at Valeros Three Rivers plant, said the facility will close for four days, beginning Saturday to allow for safety work.

Crude oil prices spiked the past week on BPs decision to temporarily close a large pipeline in Alaska after discovering corrosion, but retreated after indications that U.S. stockpiles can cover the disruption. The price of crude on the New York Mercantile Exchange closed yesterday at $76.35 per barrel, according to Bloomberg. That was $1.14 higher than a week ago.

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

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