ExxonMobil dropped posted prices last week by 30 to 50 cents per gallon, and Sunoco followed, knocking 20 to 40 cents off postings. This week five more producers – Flint Hills Resources, Valero, SK, ConocoPhillips and Chevron – have joined in, cutting posted prices as much as 65 cents per gallon.
The market is sloppy, demand is sluggish, and theres plenty of oil everywhere, one producer noted. The market is soft, another supplier agreed. Even bright stock demand is softening. If any buyer thinks bright stock is still tight, tell him to call me, he quipped.
On Jan. 15 ExxonMobil cut 50 cents/gal from its API Group I 100 vis, 40 cents/gal from 150, 330 and 600 vis, and 30 cents/gal from 275, bright stock and Group II+ products.
Sunoco also lowered prices Jan. 15, dropping 40 cents/gal from its 70 to 150 vis grades, 30 cents/gal from its 250, and 20 cents/gal from its 525. Yesterday Sunoco lowered bright stock by 30 cents/gal.
Three producers dropped postings effective Monday, Jan. 19. Flint Hills Resources, which had peeled 20 cents/gal from its Group II postings just a week earlier, went down an additional 50 cents/gal on its 70, 75 and 100 vis, down 35 cents/gal on 230, and 30 cents/gal on 600.
Valero on Monday cut 50 cents/gal from its 100 vis, 30 cents/gal from bright stock, and 40 cents/gal from all other grades, including its Group II posting.
SK dropped 30 cents/gal from all postings on all products effective Monday.
ConocoPhillips is reducing postings 30 cents to 60 cents/gal effective today, Jan. 21. The producers 70 and 80 vis grades go down 55 cents/gal, 110 is down 60 cents/gal, 225 is down 35 cents/gal, and 600 is down 35 cents/gal. The Group II+ and Group III Ultra-S oils that ConocoPhillips markets for Korean producer S-Oil are all down 30 cents/gal.
On Thursday, Jan. 22, Chevron will cut postings on Group II light vis by 65 cents/gal, on mid vis by 60 cents/gal, and on 600 by 50 cents/gal.
At the close of the Tuesday, Jan. 20, NYMEX session, light sweet crude ended at $40.84 per barrel, up $3.06 from the week earlier settlement at $37.78.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.