Paraffinic base oil producer Motiva and rerefiner Kleen Performance Products communicated price decreases this week, while Cross Oil joined the group of naphthenic producers that lowered pricing a week ago. –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.
Mexico’s ongoing changes – including a new president and a revised Free Trade Agreement with the United States and Canada – will shape its economic future, with possible ramifications for its lubricant and base oil markets, an industry insider said at the ICIS Pan American Base Oils & Lubricants Conference.
Activity in the Asian base oil market was lackluster, but this was no surprise as trading typically slows down during December since buyers prefer to end the year with minimum inventories due to tax implications. –by Gabriela Wheeler
ExxonMobil was reported to have reduced all of its paraffinic base oil posted prices by 15 cents per gallon, its second price markdown in less than a month. Several other producers announced price decreases shortly after, while several naphthenic producers also stepped out with price cuts. –by Gabriela Wheeler
Activity in the Asian base oil market was sluggish, as many buyers opted for utilizing existing inventories instead of procuring fresh cargoes as the year draws to a close, while producers appeared reluctant to grant further downward price adjustments. –by Gabriela Wheeler
Avista Oil and SK joined the group of base oil producers who adjusted down posted prices on the back of lower raw material values and lengthening supply. –by Gabriela Wheeler
Spot prices were slightly mixed in Asia, as base oil producers adjusted down offers for those grades that appeared more plentiful, while prices for a couple of cuts – which were less readily available – moved up to reflect benchmark levels. A few oils were left unchanged from the previous week. –by Gabriela Wheeler
Following Chevron's posted price decreases last week, several other movements emerged, with ExxonMobil, HollyFrontier, Petro-Canada, Paulsboro, Excel Paralubes and Calumet communicating downward adjustments as well. –by Gabriela Wheeler
ExxonMobil’s imminent startup of its Rotterdam facility is likely to cause shifts in the movement of API Group II base oils across the market, says Gabriela Wheeler.
While Asian producers appeared anxious to clear stocks as the end of the year approaches, buyers have adopted a wait-and-see attitude in hopes that a delay in purchasing would lead to lower pricing. –by Gabriela Wheeler
Plunging crude oil prices and plentiful base oil supplies seem to have prompted Chevron to lower its API Group II base oil prices this week. –by Gabriela Wheeler
Spot base oil prices in Asia were reported as stable to soft, with ample supply, adequate inventories and slipping crude oil prices driving a few indications down. –by Gabriela Wheeler
The mid-term elections in the United States captured some of the market’s attention on Tuesday, resulting in fairly muted activity at the start of the week. –by Gabriela Wheeler
Softer crude and feedstock values, together with plentiful availability of most base oil grades, continued to place downward pressure on spot prices in Asia. –by Gabriela Wheeler
The United States base oil market echoed conditions in other regions, with lengthening supply against a backdrop of gradually softening demand impacting price indications. –by Gabriela Wheeler