Group II base oils at cost advantage in weak market - consultant

20 February 2009 14:15  [Source: ICIS news]

LONDON (ICIS news)--In the current weak market conditions, Group II base oils are at an advantage to other base oil grades, said SBA Consulting's Stephen Ames at the ICIS World Base Oils & Lubricants Conference in London on Friday.

“Group II is probably the least impacted because it has a tremendous cost advantage over Group I,” said Ames.

“At some of these low prices we see today and probably for the remainder of the year Group II will be able to compete profitably, while Group I may be pushed out of the market,” he added.

Ames also said that Group III oils had seen demand most severely affected by the economic downturn due to their associations with initial fill applications, which had been hit hard by a massive downturn in the automotive sector.

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By: Shelley Kerr
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