Further rounding out the latest cycle of paraffinic base oil pricing moves, three more producers announced increases within the past week. Citgo moved all grades up by 10 cents a gallon, effective July 19. Sunoco also raised all grades by 10 cents a gallon, effective July 20. And similarly, SK added 10 cents per gallon to all its grades effective July 23. Some producers who do not post also mentioned that they followed the market upward with increases as well.
Outside of further pricing announcements, the byword is doldrums for the current paraffinic market, with very little occurring that is worthy of note. Plants are all reported to be running well with one possible exception. It has been reported over the past few weeks that Suns refinery at Tulsa has been down for a scheduled maintenance turnaround. Details have not been available, and there has been no apparent impact to product availabilities.
There is some news however on the arbitrage front, with at least one large buyer stating that his company has secured product from Europe at a significant advantage to U.S. offerings. It was reported that Group I stocks are readily available and the largest advantage is in the heavier grades.
On the naphthenic side of the business, all plants are reported to be running well. Some tightness has been reported in the lighter grades with the heavier grades said to be in balance. No pale oil movements had been reported as of the close of this weeks issue.
Regarding economics, crude has seen a minor downward correction early this week, reportedly due to being overbought by speculators. However, it remains in the low $70s per barrel, and sweet vacuum gas oil, while down slightly from the previous week, is still in the low-to-mid $80s per barrel. Fuels values have continued downward, and are not likely at this point a key driver in base stock pricing notions. However, crack spreads now heavily favor base stock production in those plants that can chose between production of base stocks and fuels.
Crude closed at $73.25 per barrel yesterday on the New York Mercantile Exchange, according to Bloomberg. That was 88 cents below the price one week ago.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.