SK Americas communicated a price increase for its API Group II bright stock, while the market was still digesting the recent round of posted price hikes which were implemented over the last two weeks. This was the second series of increases since March 14, when Motiva first kicked off an initiative for its Group II and III base oils. –by Gabriela Wheeler
LNG Publishing Company
Editor, Base Oils
Gabriela Wheeler graduated with an MA in English from California Polytechnic State University in San Luis Obispo. She joined LNG in May 2013 as the editor of the U.S. and Asia base oil price reports, after holding editorial positions at Bobbin Blenheim, Burson Marsteller, and ICIS, where she was responsible for price reporting on several petrochemical markets, as well as base oils.
Wheeler has previously resided in Japan, Argentina, Poland and the Dominican Republic.
The International Maritime Organization’s 2020 regulations won’t just affect the marine fuels and shipping industries, but is predicted to impact base oil refining as well. In fact, early prognostications on its effects are already starting to take shape.
The current supply and demand imbalance continued to be a matter of concern for Asian base oil suppliers, as this factor stifled prices at a time when producers hoped to implement increases due to the rise in crude oil, raw material, and transportation costs. –by Gabriela Wheeler
Reports that ExxonMobil would be increasing posted prices surfaced this week, along with Petro-Canada, HollyFrontier, Avista Oil, Calumet and Paulsboro. Petro-Canada also implemented an increase on its API Group II base oils last week. –by Gabriela Wheeler
The spring season has been slightly disappointing so far, with demand levels deemed lower than at the same time in years past. Producers remained hopeful that as the weather improved in many areas, so would lubricant sales. –by Gabriela Wheeler
Motiva announced a posted price increase for its API Group II and III base oils this week – its second hike in less than a month. Just a few hours later, Chevron and Kleen Performance Products also stepped out with price markups. –by Gabriela Wheeler
Despite ongoing pressure from steep crude oil and production costs, spot prices in Asia did not move up significantly because ample availability was weighing on price ideas. –by Gabriela Wheeler
Calumet rounded off the latest string of price increases by raising the posted price of its API Group I bright stock, while Paulsboro’s and SK Americas’ mark-ups were implemented early this week. –by Gabriela Wheeler
Base oil producers persisted in their efforts to improve spot price levels given the recent rise in crude oil and feedstock values, but plentiful availability hampered the upward movement of prices. –by Gabriela Wheeler
An avalanche of paraffinic posted price increases hit the market this week, with ExxonMobil, HollyFrontier, Petro-Canada, Calumet, Paulsboro, and SK all communicating markups on the heels of similar producer initiatives a week ago. –by Gabriela Wheeler
Gabriela Wheeler wonders whether a placid base oil market is just the calm before a storm of demand.
Despite plentiful availability of most base oil grades, sentiment in Asian markets has shifted, with some spot price ideas firming on the back of steeper crude oil and feedstock costs. –by Gabriela Wheeler
Motiva stepped out with a posted price increase, and was quickly followed by a number of suppliers, including Excel Paralubes, Chevron, Kleen Performance Products, and Avista Oil. On the naphthenic front, Cross Oil and Ergon also announced markups. –by Gabriela Wheeler
Steep crude oil prices exerted upward pressure on base oil price indications, but the supply glut was still an issue, with domestic prices climbing in one country, slipping in another, and spot offers heard to be rising from various supply points in Asia. –by Gabriela Wheeler
The base oil market seems to be going through a transitional period between the slower winter months and the arrival of spring; requirements are starting to pick up but are not yet reaching the anticipated levels for this time of the year. –by Gabriela Wheeler