South Korean refiner SK E&P on Monday decreased by 10 cents across the board its four Group III base oil offerings. The U.S. market was otherwise quiet after last weeks series of Group I and Group II price reductions.
An industry source said Group III marketers do pay attention to Group II-Plus prices. Group IIIs have to compete with Group II-Pluses, so to the extent there are price changes in Group II-Pluses, that can affect how a Group III marketer looks at the world, he said.
This source said Group III availability appeared to be normal or good. There are no issues Im aware of, he added.
Another source said the Group III market generally speaking was tight. He said the 4 centistoke grade, popular for passenger car motor oil, is particularly tight.
I think this year and into next year were going to see that continue, he said. In 2008 there will be four to five new plants coming onstream, mostly in Asia, that are going to change that situation.
Crude closed at $58.85 per barrel yesterday on the New York Mercantile Exchange, according to Bloomberg. That was 15 cents below the price a week ago.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.