US base oils tender awarded for July

11 June 2008 18:41  [Source: ICIS news]

HOUSTON (ICIS news)--A US base oils producer has awarded its Group I low viscosity base oils tender for late June/early July lifting, the seller said on Wednesday.

The tender, for 6,000 tonnes of solvent neutral 165 grade paraffinic base oil, was awarded at an excess of $4.10/gal free on board (FOB) New Jersey with the final price indexed to feedstock vacuum gas oil (VGO) costs at the time of loading.

The final price tag would be set a week before the ship sets sale, the seller said. The buyer and seller wished to remain anonymous.

Tenders are not at all common in US base oils market but the market is the tightest it has been in years, a trader said.

Sellers did not see any additional low viscosity material available until August, but traders said plenty of inquiries were coming in from all locations.

Low viscosity base oil supply has been tight following news of reduced production from Marathon and Citgo, and refiner economics.

Published prices for Group I low viscosity base oils have risen more than seven times since March, sellers said.

The posted contract price for Exxon’s 150 grade would be moving up to $4.47/gal on 12 June, according to data from global chemical market intelligence service ICIS pricing.

To discuss issues facing the chemical industry go to ICIS connect

By: Heather McGuire Doyle
+1 713 525 2653

< previous article(VIDEO - ICIS news Asia Lunchtime Bulletin 28 October 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly