Group III importer SK said last week that it will close its base oil terminal in Los Angeles, due to insufficient demand.
Elsewhere in the market, Motiva said it has scheduled a maintenance turnaround early next year for one of three production trains at its Group II plant in Port Arthur, Texas.
SK began offeringGroup III base oilsfrom the Los Angeles terminal in September 2004 as part of an effort to encourage sales on the West Coast. Evidently, business there never grew big enough to justify the operation.
SK, which imports stocks from its plant in Ulsan, South Korea, continues to market them from two terminals in Houston.
Motiva began telling customers last week thatone of its trains will close temporarily during the first quarter of 2007. That train has capacity to make 15,000 barrels of oils per day.
Motivas turnaround will come on the heels of another at Chevrons Group II plant in Richmond, Calif. That event, scheduled for January, will temporarily shutter the enfire 15,000-barrel-per-day plant.
The cost of crude oil on the New York Mercantile Exchange closed yesterday at $58.54 per barrel, according to Bloomberg. That was 2 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.