Posted prices for paraffinic base oils in the United States were unchanged again this week, but crude oil costs continued to drop. The price of crude on the New York Mercantile Exchange closed yesterday at $61.74 per barrel, Bloomberg reported, a drop of $1.93 over the past week.
NYMEX crude prices have fallen nearly $7 in the past two weeks and are now down 21 percent since peaking above $78 in mid-July. Prices are at their lowest level in nearly six months.
According to news reports, analysts cited two reasons for this weeks decline: an increase in stockpiles of fuel in the United States; and improving prospects for a peaceful solution to the confrontation over Irans uranium enrichment program.
U.S. demand for heating oil is expected to rise as winter approaches, but energy analysts have nevertheless turned more bearish with fuel stockpiles rising in the wake of the nations peak summer driving season.
Observers said the market is also finding optimism in a softening of rhetoric from both Iran and the United States over the uranium enrichment program. Comments suggesting the conflict might be resolved without sanctions have buoyed hopes of avoiding further disruption in energy supplies from the Middle East.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.