Chevron, Sunoco and SK this week concluded the latest round of price hikes for paraffinic base oils. Chevron increased the posted price of its Group II offerings by 6 to 14 cents per gallon, effective today. Sunoco mirrored the other Group I suppliers, while SK went up 8 cents on its Group III stocks. Dont expect price relief soon, cautioned one buyer.
Chevron announced Monday that the posted price on its Group II 100 neutral would go up 9 cents per gallon, the 220 would rise 6 cents per gallon, and the 600 would rise 14 cents per gallon, effective today. In addition, buyers report that Chevrons Group II-plus is up 9 cents per gallon.
Sunoco increased the posted price of its Group I stocks 7 cents per gallon across the board on lighter viscosity stocks, and 12 cents per gallon on 600 and up, following the lead set by ExxonMobil last week. Sunocos increase was effective last Friday.
SK E&P also increased prices effective last Friday, with postings on all its Group III Yubase base oils rising 8 cents per gallon. Last week ConocoPhillips upped its Group III postings by 8 to 10 cents per gallon.
This last price increase was based solely on margins, said one base oil buyer, explaining that base oil margins have to compete in the refinery with fuel margins. As long as gasoline and heating oil prices remain high, upward pressure remains. If we can predict gasoline and heating oil prices, then we can predict base oil prices. I dont expect price relief soon.
There shouldnt be any more [upward price] movement if crude stays below $60, but the fuels side makes it crazy, another buyer agreed. Fuel muddies the water. We cant just look at supply and demand.
The price of crude oil on the New York Mercantile Exchange closed yesterday at $58.89 per barrel,$1.36higher than a week earlier.
Historic U.S. posted base oil prices and WTI and Brent crude spot prices are available for purchase in Excel format.