US base oil prices may fall by up to 21%
23 March 2009 15:19 [Source: ICIS news]
HOUSTON (ICIS news)--US base oil buyers received on Monday price decrease letters of up to 21% on Monday, just as the National Petrochemical and Refiners Association (NPRA) international conference began in San Antonio, Texas.
US base oil suppliers often send out a round of price changes just before a big industry event such as NPRA, a buyer said. “I am sure we will hear from other suppliers before the day ends,” the buyer added.
Group II supplier Motiva told buyers it would reduce posted base oil prices by 30-75 cents/gal, depending on the grade. The price decrease would be effective on 1 April. Motiva’s last posted decrease was on 2 February.
Motiva’s 600-grade oil was posted at $3.31/gal prior to the decrease, according to data from global chemical market intelligence service ICIS pricing.
Motiva’s largest decrease will be the 600-grade oil, which will drop by 75 cents/gal to $2.56/gal ($768/tonne, €568/tonne).
ExxonMobil will reduce its grades by 40-85 cents/gal, depending on grade, effective on 25 March, said buyers who received the news in a letter.
ExxonMobil’s bright stock oil will drop the largest amount at 85 cents/gal to $3.22/gal.
The decreases come following heavily discounted spot offers at $0.75-1.50/gal off posted prices.
The collapse of key downstream sectors such as automotive and manufacturing has impacted demand just as additional supply arrived in the US base oils market.
Motiva’s 40,000 bbl/day Port Arthur base oil facility in Texas had been in a planned 45-day turnaround for most of the first quarter, but restarted during the first week of March.
($1 = €0.74)
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