ConocoPhillips said yesterday that it will reduce posted prices on light- and mid-grade Group II base oils between 10 cents and 12 cents per gallon, effective today. The action brings its price tags in line with two other Group II suppliers and leaves some of its products at a discount to Group I oils.
Elsewhere in the market, SK added another product to its offerings of imported Group III stocks – an 8 centiStoke product. Valero confirmed that it cut postings Oct. 11 to join the most recent round of decreases.
ConocoPhillips last reduced prices in late September, and that movement was viewed by at least some in the industry as being part of the latest round. Still, todays decrease was needed to bring it in line with Group II suppliers Motiva and Flint Hills Resources, which refrained from an August round of increases.
Like Motiva and Flint Hills, ConocoPhillips Group II 225 neutral is now posted cheaper than all corresponding Group I oils, and its 110 neutral is cheaper than all corresponding Group Is except for Citgos. ConocoPhillips did not change the posting for its Group II 600 neutral – or its Group III oils – but the 600 neutral was already discounted to corresponding Group Is.
Valero imposed 15-cent cuts on its Group I 100 and 165 neutrals, as well as its Group II 150 neutral, consistent with actions taken by other suppliers.
With the addition of the 8-centiStoke product, SK now offers four grades of oil from terminals in Houston.
The cost of crude oil on the New York Mercantile Exchange closed yesterday at $59.04 per barrel, according to Bloomberg. That was 50 cents higher 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.