The U.S. base oil market apparently will have to wait another week for the massive expansion of Motivas Port Arthur, Texas, plant. Industry sources said yesterday that the company now says it expects to have oil in the tanks by next week.
The project is designed to boost the plants capacity by 15,000 barrels per day, to 40,000 b/d of Group II and Group II-plus oils. At the beginning of this year the company was targeting a start-up date of Feb. 1, but that schedule hasbeen delayed several times.
Some lubricant blenders have viewed the expansion as a source of relief from the disruptions that have plagued base oil supply the past five months. Motiva has tried to squelch that notion, suggesting the market will not feel the impact of its expansion until mid-year. An existing part of the Port Arthur plant is scheduled to close for maintenance in the spring and the company will be working to build inventories before then.
Posted prices for paraffinic base oils were unchanged this week, but crude prices moved upward once again. The price of crude oil on the New York Mercantile Exchange closed yesterday at $62.41, according to Bloomberg. That was $3 higher than a week earlier.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.