Volume 16 Issue 39

SSY Base Oil Shipping Report

Talk of a recovery turned out to be premature as all routes globally turned to ice this week. Such is the state of global trading these days that even minor shifts in feedstock pricing create substantial ripples further down the line that can bring the shipping market to an abrupt stop. U.S. Gulf Among Far East routes, styrene was tried into Asia, but became a bit of a no-show when it became apparent there was hardly any surplus styrene in the U.S. Gulf for October. Asian prices were also recedi...

Lanxess Absorbs Chemtura for $2.5B

Lanxess AG plans to form a new performance additives segment and become a bigger player in industrial lubricant additives after the closing of its $2.5 billion all-cash acquisition of Chemtura that was announced Monday. The deal is expected to close in mid-2017, subject to conditions and approvals. Under the agreements terms, Chemtura shareholders will receive $33.50 per share in cash for each outstanding share of common stock held, an 18.9 percent premium to the stocks closing share price of $2...

U.S. Base Oil Output Dips

U.S. base oil producers eased back in the first six months of 2016. The countrys refiners manufactured 29.1 million barrels from January to June, according to government data released Aug. 31, which represents a decline of 8 percent compared to the same period in 2015, when output hit 31.8 million barrels. The 29.1 million barrels generated in this years first half included 24.7 million barrels of paraffinic base oils and 4.4 million of naphthenics, according to the Energy Information Administra...

Nigeria to Prosecute Unlicensed Blenders

The Nigerian Department of Petroleum Resources recently raided three unlicensed blenders in the north central state of Kwara for producing substandard products. The raid, in which 50 persons were arrested, resulted in the closure of three oil blending factories, including Segma Oil Ltd., Manner Business Ventures and Wobles Ventures in Kwara state. Adunola Kasali, a deputy manager in the downstream division of the DPR, said the blenders were raided because they were unlicensed to operate blending...

Lukoil Posted Strong January-June Results

Russian lube maker Lukoil said its finished lubricant and grease sales rose 15 percent in this years January-June period, primarily driven by the growth of its high-margin sales and increased number of international approvals in its product portfolio. In the first half of 2016 our total finished lubricant and grease sales grew to 435,000 tons, up 15 percent from the same period last year, the company told Lube Report last week. In the first six months of 2016 Lukoil [managed] to increase its dom...

Briefly Noted

Brenntag – which acquired mega-distributors J.A.M. Distributing in Texas and G.H. Berlin-Windward in New Hampshire in late 2015 – agreed to acquire lubricants and fuels distributor Mayes County Petroleum Products Inc. in Pryor, Oklahoma. American Refining Group broke ground this month on a $3 million, 6,400-square-foot quality control lab that will replace the main quality control lab at its refinerys blending plant in Bradford, Pennsylvania. The main quality control lab provides many services, including inspection of incoming raw materials used to blend branded lubes and analysis of both blended and packaged lubricants.