U.S. base oil supply/demand conditions remain sluggish, with most paraffinic participants identifying stocks as readily available amid fairly flat to steady buying interest. The naphthenic sector maintains a better balanced stance than the paraffinic side, with demand for pale oils stable at best – losing some of the vigor seen earlier in the year.
Meanwhile, Ergon confirmed that it will raise the price of all its naphthenic grades 15 cents per gallon, effective Monday, Oct. 29. Higher prices are necessary to remain competitive, as all other naphthenic producers increased prices earlier this month, the company indicated. Rising operating costs also played a role in price hikes for these producers, as naphthenic pricing is closely linked to crude oil prices, said sources.
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