16 June 2009 04:16 [Source: ICIS news]
SINGAPORE (ICIS news)--Oil major Exxon Mobil announced a $60/tonne (€43.8/tonne) hike for group I and II base oils for Asian term buyers on the back of surging crude and gas oil values, said the company’s large base oil buyers on Tuesday.
The price hikes, which will take prices of SN-150 and SN-500 as well as group II 150 and 500 neutrals for contract buyers close to $700/tonne levels ex-tank ?xml:namespace>
Prices of brightstock will also be increased by $30/tonne, said several buyers.
These price increases came on the heels of a $30/tonne price hike announced early this month and will take effect on 16 June. The market had been anticipating a further increase after crude values shot up above the $70/bbl mark, sources said.
"The hike will bring the term prices of Exxon Mobil closer to the spot markets that had already factored in high crude and gas oil values," said a Singapore-based base oils buyer.
"Spot market has been tight and its hard to get small lots," said a key regional blender.
"We are not so surprised with the announcement but $60/tonne is a big change at one shot," said another
Key base oils producers in Asia include Exxon Mobil, Shell, Nippon Oil, SK Energy, S-Oil and GS Caltex.
($1 = €0.73)
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