The U.S. base oil market moved closer to operating on all cylinders two weeks ago, when Citgo completed a maintenance turnaround at its Lake Charles, La., plant. An industry source said the company reported that the facility restarted on schedule and uneventfully after a monthlong shutdown.
The Lake Charles plant has capacity to make 9,500 barrels per day of Group I stocks.
Another Group I plant, Marathons 6,700-b/d facility in Catlettsburg, Ky., closed for maintenance in October. Sources said the company has started taking orders again but that it was not clear if that plant has restarted yet.
Many buyers and sellers headed to Houston this week for the National Petrochemical and Refiners Associations annual International Lubricants and Waxes Meeting. The atmosphere is expected to be much more upbeat than a year ago, when the market was grappling with the after-effects of Hurricane Rita, which temporarily closed four base oil plants along the Gulf of Mexico.
Paraffinic base oil prices were unchanged this week. The price of crude oil on the New York Mercantile Exchange closed yesterday at $59.24 per barrel, according to Bloomberg. That was 67 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.