ExxonMobil base oil customers face $60/tonne increases in Europe

12 April 2011 12:46  [Source: ICIS news]

LONDON (ICIS)--ExxonMobil has informed its domestic base oil customers in Europe of $60/tonne (€41/tonne) price increases across its Group I range to take effect on 23 April, market sources said on Tuesday.

The company last raised its prices in Europe on 15 March, when it implemented a $120/tonne increase. Other European producers have been raising prices by similar amounts.

ExxonMobil has not commented on the extent or timing of the price increases.

Higher crude oil prices and the rising cost of vacuum gasoil, the main feedstock for Group I base oils, have eroded refiners’ margins. Many buyers said they are expecting further price increases.

ExxonMobil is planning to raise its US Group I base oil prices by 35-40 cents/gal on 13 April. In Singapore, the company implemented $50/tonne increases on 1 April and has announced further $60/tonne increases to take effect on 26 April.

ICIS quoted prices in the range $1,270-1,320/tonne FOB (free on board) northwest Europe for SN150, a main Group I base oil grade, on 5 April.

Group I base oils are a main component in automotive engine oils, industrial and marine lubricants.

($1 = €0.69)

By: James Mills
+44 208 652 3214

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