Suppliers and purchasers said the unevenness of the cuts suggests resistance to the lead of ExxonMobil, which dominates the market with a market share of approximately 40 percent. Several sources, citing the fact that crude oil prices have risen slightly this month, expressed surprise at ExxonMobils base oil price reductions.

I think [suppliers] moved this time according to their own individual supply-and-demand issues, one purchaser said. If they were long on a particular cut, they came down 8 cents, or so. But if they were in balance, maybe 4 was all they needed to do.

This purchaser also suggested that the latest round of cuts – the fourth in just over four months – may be the last for some time. Lubricant demand typically rises during springtime and crude prices appear to have stabilized, at least for the moment.

I would think were done for now, the purchaser said. In fact, if demand picks up, the question should be, how much can crude rise before base oil prices increase?

Valero during the past week opened the truck portion of a new loading rack at its Paulsboro, N.J., refinery. In coming weeks, the $10 million system is scheduled to begin loading rail cars, too. Until now, Valero contracted terminals for orders that required rack loading.

Besides lowering our own costs, this rack gives us total control over loading schedules, prioritization, waiver approval and helping people with emergencies, said Cary Palulis, lube marketing manager.