The U.S. base oil market was abuzz this week with a multitude of price changes covering API Group I, II/II+ and III paraffinic base stocks and naphthenic pale oils. Decreases ranged from 30 cents to as much as 68 cents per gallon during this spate of initiatives issued by virtually every producer.
ExxonMobil notified direct customers of plans to lower all its Group I and II+ lineup by 60 cents per gallon, effective Monday, Nov. 24, according to sources.
Flint Hills Resources reduced postings on all its Group II grades by 60 cents/gal on Nov. 24.
ConocoPhillips adjusted down its Pure Performance grades between 50 to 68 cents/gal yesterday, Nov. 25. The light vis 70N and 80N slipped by 60 cents, and 110N went down by 50 cents/gal. The 225N fell by 68 cents/gal while the 600N shed 63 cents/gal. The company also confirmed that Group II+ and III Ultra-S postings lost 60 cents/gal for all grades. ConocoPhillips markets S-Oils Group II+ and III oils in North America.
SK dropped postings on its lineup of Group II+, III and III+ Yubase oils by 60 cents/gal on Nov. 25.
Motiva trimmed all Group II and II+ base stocks by 50 cents/gal yesterday, Nov. 25.
Sunoco pushed down its Group I base stocks yesterday, Nov. 25, by 60 cents/gal.
Calumet lowers postings on all its Group I and II base oils by 60 cents/gal today, Nov. 26.
Valero plans to adjust its Group I and II postings on Friday, Nov. 28, by 60 cents/gal. Ergon, which does not post prices, will also lower its Group I base oil prices by the same amount on Nov. 28.
On Nov. 30, Chevron will bring down its Group II base stock postings. The 100N will go down by 60 cents/gal and the 220N and 600N grades will decline by 65 cents/gal.
In the naphthenic sector, Ergon will lower all its pale oil prices by 60 cents/gal on Friday, Nov. 28. San Joaquin Refining will chop prices on its slate of naphthenic oils by 30 cents/gal on Dec. 1. Nynas will reduce prices by 40 cents/gal on Dec. 3. Calumet will decrease its lineup of pale oils values by 60 cents/gal on Dec. 9. Cross Oil said it will price pale oils at a competitive level and continue to evaluate the market going forward.
From the producers side, lower posted prices were a result of falling crude values and a noticeable improvement in inventories for most grades. Bright stock remains a tighter cut alongside robust demand.
Participants said the decreases were welcomed with open arms, and the timing could not have been better given the approaching U.S. Thanksgiving celebration. Prices dropping this significantly in one round helped calm a lot of otherwise-rattled nerves, several buyers joyfully proclaimed.
At the close of the Tuesday, Nov. 25, NYMEX session, front-month light sweet crude futures settled at $50.77 per barrel,a loss of $3.62compared to the week earlier close at $54.39.
Carolyn L. Green, based in Houston, can be reached directly at carolynlgreen@gmail.com.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.