US Motiva raises Group II base oil prices

16 February 2011 23:15  [Source: ICIS news]

HOUSTON (ICIS)--US base oils producer Motiva issued increases up to 47 cents/gal ($143/tonne, €106/tonne) effective 18 February on its Group II product slate, buyers said on Wednesday.

The increases ranged 31-47 cents/gal on the Group II product grades, with 200/220 viscosity ranged base oils at the top of the increase range.

Group II+ 110/130 base oils were also included, increasing 47 cents/gal to a posting of $4.49/gal from $4.02/gal.

Motiva last increased its paraffinic Group II base oil prices on 1 December, matching the Group II+ with increases on the same date.

Sources said the increase was supported by feedstock vacuum gas oil (VGO) prices tracking Brent crude oil values.

ICE Futures April Brent settled at $103.78/bbl on Wednesday trading, following a Tuesday close of $101.64/bbl.

March Nymex futures on light sweet crude closed at $84.99/bbl, up 67 cents from Tuesday’s close of $84.32/bbl.

Low sulfur VGO prices were last assessed at a $20 premium over light sweet crude, with high sulfur VGO assessed at an $18.50 premium.  

The US is the largest Group II supplier to the rest of the world, with about 65% of market share.

($1 = €0.74)

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