Sinopec cuts Dec base oil internal settlement price by $54/tonne

30 November 2011 11:31  [Source: ICIS news]

SINGAPORE (ICIS)--Sinopec will cut base oil settlement prices by CNY340/tonne ($54/tonne) for internal supplies in December, a company source said on Wednesday.

Internal supply refers to supply by one Sinopec unit to another, or to its sister companies.

The cut reflects the continual decline of Group I base oil prices in Asia since early November, according to the source.

November free on board (FOB) prices for Group I base oils dropped by $40/tonne from October in Asia, ICIS data show.

Meanwhile, the China-based giant will keep prices stable for cargoes supplied to external companies, the source said.

However, traders said that the settlement price cut is a signal that Sinopec may also cut prices for external supplies.

Sinopec’s November internal settlement prices were CNY450/tonne below those in October.

($1 = CNY6.35)

By: Whitney Shi
+65 6780 4359

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