19 January 2011 05:40 [Source: ICIS news]
SINGAPORE (ICIS)--Oil major ExxonMobil will increase Asian base oils term prices by at least $20/tonne (€15/tonne) next month, company’s customers said on Wednesday.
The $20-60/tonne price hike for Group I and II base oils will be implemented on 1 February, the third such increase since November.
Singapore ex-tank prices for SN-150 and 150 neutrals will go up by $20/tonne to around $1,130-1,140/tonne.
Prices of the tightly supplied brightstock will be at around $1,410-1,420/tonne ex-tank, a $60/tonne increase from current levels. SN-500/500N will be offered $40/tonne higher at around $1,205-1,215/tonne ex-tank.
ExxonMobil’s latest price increase comes amid bullish crude futures and strong regional demand.
Light sweet crude for February delivery was trading at above $91/bbl on Wednesday morning in Asia, while Brent crude was hovering near $98/bbl.
Chinese importers want to start stocking up ahead of the March-April peak production season in case crude values continue to increase.
A spate of refinery turnarounds in the first quarter of 2011 may also result in tighter supplies.
Smaller buyers said it would be difficult to reflect the higher base oils costs in their finished lubricants pricing as base oils prices have been on a strong uptrend since November.
“We had earlier hoped that prices would come down. The market here (in ?xml:namespace>
($1 = €0.75)
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