17 June 2009 12:43 [Source: ICIS news]
LONDON (ICIS news)--Oil major ExxonMobil has announced price increases of $110-150/tonne (€79-108/tonne) for group I base oils in the European domestic market due to surging crude and gas oil values and increased demand, the company’s customers said on Wednesday.
“Apparently demand has picked up, particularly for exports to the Middle East, and the other thing is feedstocks,” said a source at a large-volume buyer based in ?xml:namespace>
“[When they increase], they always say it’s to keep base oils competitive at their refineries and keep them producing instead of putting feedstock into fuels,” he said.
Term buyers said the company announced that it would increase prices on 23 July by $90/tonne for solvent neutral (SN) 100, $70/tonne for SN150, $60/tonne for SN500 and $50/tonne for brightstock.
This will then be followed by a second hike effective 1 July, which will see prices increase by a further $60/tonne for SN100, $80/tonne for SN150, $90/tonne for SN500 and $60/tonne for brightstock.
Buyers agreed that it was unusual for the company to announce two separate price moves simultaneously.
The company already implemented hikes of around $70-80/tonne on solvent neutrals in June, following a three-month period of stability.
Base oils are used primarily in the manufacture of lubricants for automotive and industrial applications.
($1 = €0.72)
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