Citgo, Flint Hills Resources, Chevron, Calumet and SK joined the growing list of producers that issued price announcements in the week ending June 11. The recently announced hikes ranged from 20 to 35 cents per gallon for API Group I, II and III base oils.
Citgo raised all Group I solvent neutral base stocks by 35 cents/gal on Thursday, June 12.
On Monday, June 16, Flint Hills pushed up its Group II 70 and 75HC oils by 25 cents/gal. The company also raised its 230 and 600HC grades by 30 cents/gal. FHR added another 20 cents to its 100HC after implementing a 20 cents/gal for this single grade on June 6.
Chevron raised its Group II lineup of base oils by 25 cents/gal for all vis grades effective today, June 18. The company said that this increase was purely a result of rising feedstock costs.
Also today, June 18, SK will boost its Group III Yubase lineup by 35 cents/gal across the board. On June 9, SK upped its base stocks by 25 cents/gal.
On Friday, June 20, Calumet plans to lift its Group I and II base oils by 35 cents/gal, with the exception of 700 vis, which will climb 30 cents/gal.
Market players are increasingly weary in dealing with constantly rising prices and all the paperwork involved. Adding to the tension is the lack of readily available volumes. Additionally, rumors abound that Marathon has already or will join Citgo in shuttering its lubes and wax facility sooner than the market anticipated. (See related stories, above.) This has certainly added fuel to the short-supply fire that is seemingly raging out of control, sources said.
Meanwhile, it appears that offshore demand has picked up and buyers in Europe, Asia and South America are willing to pay up for any surplus volumes they can get their hands on.
Crude values have seemingly moderated from the past weeks highs, following the news that Saudi Arabia plans to increase output by 200,000 barrels per day commencing with July production. All Western leaders have urged Saudi Arabia to relieve consumers woes over rising gasoline prices by boosting oil supply. Oil prices spiked at near $140 per barrel on Friday and have since drifted lower.
At the close of the Tuesday, June 17, NYMEX session, light sweet crude futures ended the day at $134.01 per barrel, up $2.70/bbl from its week-ago settlement of $131.31/bbl.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.