LONDON – Crude price doesnt correlate to lubricant base oil yield or quality. Rather, paraffin content is key, and Asia is home to some of the worlds best lube crudes. Crude is 85 to 90 percent of the cost of a barrel of base oil we make, said Amy Claxton, principal of consultancy My Energy. Light, sweet, expensive crude may or may not be good for base oil. The base oil refinery will prefer lower-priced Arab light or heavy. Claxton, based in Hummelstown, Pa., described the impact of cru...

Apparently there is no such thing as too much lubricant blending capacity in the United Arab Emirates. German lube marketer General Petroleum announced last week that it has opened a plant in the emirate of Sharjah with capacity to make 150,000 metric tons of lubricants per year. Based on estimates by industry analysts, the country already had capacity of approximately 1.25 million t/y – roughly 10 times the level of domestic demand. We think the market clearly has room for more capacity,...

Fuchs Petrolub AG posted 171.6 million (U.S. $236 million) in earnings on full-year 2010 sales revenues totaling 1.5 billion, up from 2009 earnings of 121.4 million on sales of 1.2 billion. Cash flow hit 77.1 million after acquisition payments for Shells food grade lubricants business in October 2010, and the financing of Fuchs growth in revenues. That compared with a record 180 million cash flow in 2009, Fuchs reported. The Mannheim, Germany-based independent lubricant blender said it plans fu...

BP is seeking buyers for its Duckhams and Veedol lubricant brands, which date back to the early 20th century. The buyer will get global rights to a portfolio of registered trademarks for the respective master brand along with associated product sub brands and iconic logos. BP said it would not include any sales or customer lists, product formulation or rights or commitment for supply or other operational support. BP Group spokesman Sheila Williams confirmed the brands product formulations woul...

It has been a much quieter week in all the major markets worldwide as companies watch events unfold in the Middle East and North Africa and then attempt to assess what it means for them and their customers. For most, it has meant a week of observation rather than trading cargoes. U.S. Gulf of Mexico Rocketing commodity prices are one reason why the U.S. Gulf has been quiet this week. Another is the fog that engulfed the region, causing lengthy delays. This problem is particularly acute on the sh...