ExxonMobil announced yesterday an across-the-board increase of 10 cents per gallon on posted base oil prices in the United States. Citgo joined the action, which is expected to trigger the second round of markups in the young year.
ExxonMobils increase takes effect today, a little over three weeks after the market completed a massive hike that ranged from 11 cents to 19 cents along the Gulf of Mexico Coast and as high as 29 cents on the East Coast. Although base oil margins are said to be at record levels, marketers said then that further increases were likely because of exceptional tightness of supply. According to customers, ExxonMobil cited that cause for this weeks movement.
Citgo stayed in step yesterday, announcing a 10-cent increase of its own, also effective today. There was no word of actions by any other supplier yesterday, but sources predicted the rest of the market will follow.
Buyers sounded downbeaten but also too preoccupied by the task of securing barrels (See article above) to focus on their cost.
I only hope that we can get some relief from this situation soon, one buyer said.
Crude oil prices on the New York Mercantile Exchange closed yesterday at $61.72 per barrel, according to Bloomberg. That was down 69 cents from a week earlier.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.