ExxonMobil plans 14-19 ct/gal base oils price hike
30 January 2006 20:08 [Source: ICIS news]
HOUSTON (ICIS news)--US base oils producer ExxonMobil said on Monday it sought to increase prices on all paraffinic grades by 14-19 cents/gallon, effective on Wednesday.
With the proposed increases, US Gulf Coast paraffinic grades would be $2.62-3.12 (Euro2.17-2.58)/gallon and US East Coast paraffinic grades would be $2.83-3.33/gallon. ExxonMobil last sought a price increase on 19 December, raising one Group II+ grade by 15 cents/gallon. Before that, the company implemented a widespread round of increases on 22 September, lifting all Group I and Group II + grades by 10 cents/gallon.
ExxonMobil said higher prices were necessary due to strong demand along with rising transportation and raw material costs. Tight availability was also cited as a key support factor pushing up base oil prices.
In addition to boosting posted prices, ExxonMobil also told customers that the differential between its
Motiva Enterprises pushed through 10-14 cents/gallon hikes on 25 January. Following that announcement, Flint Hills said it planned to increase posted prices by 11-16 cents/gallon for its Group II products, effective 28 January. Calumet Lubricants also told its customer plans to lift prices by 10 cents/gallon effective Monday for all paraffinic grades. Other paraffinic producers, including Sunoco, Citgo, Valero, Conoco and Chevron, had not made known their intentions to lift postings yet, but sources expected these refiners to follow suit within the next day or two.
The downstream market also saw rising prices, according to sources. Castrol and ExxonMobil told customers that higher prices are on tab for early March implementation. Planned increases were reported to be at least 8% or about 25-50 cents/gallon.
By: Carolyn Green
+1 713 525 2653
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