Following ExxonMobils move this past Friday, a number of other paraffinic base oil marketers have increased their posted prices from 5 cents to 15 cents per gallon. As of the close of business yesterday, others who had announced moves included Calumet (paraffinic stocks only), Citgo, Flint Hills, Motiva, Sunoco, SK and Valero. ConocoPhillips is continuing to evaluate the market, and sources had no news from Chevron.
Calumet (effective today), Citgo (effective yesterday), SK (effective June 4), Sunoco (effective yesterday) and Valero (effective June 1) all raised their postings by 10 cents per gallon across the board, matching ExxonMobils move last week.
Flint Hills Resources announcedFriday that, effective immediately, its 70 and 75 vis grades were unchanged; its 100 increased 5 cents per gallon; its 230 went up 10 cents per gallon; and its 600 increased 15 cents per gallon.Motiva hiked its 70 vis by 4 cents per gallon, its 105 by 7 cents per gallon, and its remaining Group II and Group II+ postings by 10 cents per gallon, all effective June 1.
All of the announced paraffinic posting changes are reflected in the chart below.
Nynas yesterday announced increases of 7 cents to 10 cents per gallon on all grades of its naphthenic stocks, effective June 11.Lube Report isaware of no other naphthenic producers thatannounced changes as of this writing.
While base stock producers are clearly feeling margin pressure created by current fuel prices, length in some grades, particularly the light grades, has some buyers questioning pricing moves in those grades. Buyers have reported continued availability of spot barrels at attractive offerings. However, since many contracts are tied in some way to posted prices, the posting moves may have the effect of merely increasing the differential between spot and contract prices for those grades until supply rebalances.Producers report overall demand isgood to strong. However, pricing motions in the lower viscosity Group II grades may reflect the continued length there.
Cross Oils Smackover, Ark., refinery is back on line as of this past Thursday. A company spokesman reported that although the outage was unplanned, work originally planned for December was moved up and a full maintenance turnaround was performed.Following inventory builds this week, they anticipate resuming regular shipmentson Monday.
Crude closed at $63.15 per barrel yesterday on the New York Mercantile Exchange, according to Bloomberg. That was $1.82 below the price one week ago.
Publishers note: Lube Report welcomesPrice Report Guest Editor Mark Matson, who retired last year from Marathon Ashland. Matson has spent over 27 years in the finished lubricants and base oils businesses. He can be reached at mdmatson@gte.net.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.