The base oil market was quiet this week, due largely to today’s U.S. Independence Day holiday. To date, no other producers have announced price moves following last week’s increases by Flint Hills Resources.
However, some producers continue to report pressure on values from fuels, a notion bolstered by the ongoing significant premium for vacuum gas oil over crude oil, as crude oil has rebounded to even higher ground this week. That pressure is reported to be moving some spot values upward. However, some producers opine that further crude oil increases may impact the base oil market more broadly.
Otherwise, the overall supply-demand balance is reported to be relatively unchanged, and plants are reported to be running normally.
Crude closed at $71.41 per barrel yesterday on the New York Mercantile Exchange, according to Bloomberg. That was$3.64 above the price one week ago.
Publishers note: Mark Matson retired last year from Marathon Petroleum after spending over 27 years in the finished lubricants and base oils businesses. He and wife Deb live on a farm in Ohio, where they breed, train and show Tennessee Walking Horses. When not making hay, 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.