ExxonMobil to raise Europe base oil prices by $50/tonne from 6 May

26 April 2011 12:56  [Source: ICIS news]

LONDON (ICIS)--Major petrochemicals manufacturer ExxonMobil has informed Group I base oil customers in domestic European markets of a $50/tonne (€34.50/tonne) increase on all grades from 6 May, market sources said on Tuesday.

It is the Texas-headquartered company’s fourth price hike in Europe this year, with the 22 February, 15 March, 23 April and 6 May increases raising base oil prices this year by $260–305/tonne, depending on grade.

ExxonMobil has also been raising prices in the US and Asia, while other base oil producers have been raising prices in Europe in response to higher crude oil prices and the increasing cost of vacuum gasoil feedstock.

Customers said the European market was tight, with no opportunity to resist higher prices. One buyer said the latest ExxonMobil price increase came as no surprise at all.

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

ICIS was quoting domestic prices for the main SN150 grade of paraffinic base oil at $1,310–1,360/tonne FOB (free on board) NWE (northwest Europe) before ExxonMobil implemented a $60/tonne price increase on 23 April.

Base oils are the main components in automotive engine oils and other lubricants.

($1 = €0.69)

For more on ExxonMobil, visit ICIS company intelligence

By: James Mills
+44 208 652 3214

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