17 January 2012 23:59 [Source: ICIS news]
LONDON (ICIS)--Base oil prices in the Baltic Sea have increased $10/tonne (€8/tonne) this week because of reduced supply and healthy demand, sources said on Tuesday.
For the first time since May 2011, Baltic export prices have risen.
Much like prices in others parts of Europe, Baltic prices started to decline last summer and remained weak through to the end of the year because of poor demand and ample supply.
This week, a major producer active in both the Baltic Sea and Black Sea said it was reducing its base oils production during January and February because of the narrow spread between base oils prices and feedstock vacuum gas oil prices.
Steady demand amid reduced supply is said to have pushed up prices this week.
Both solvent neutral (SN)150 and SN500 prices were assessed up $10/tonne at the low end to $900-940/tonne FOB (free on board) Baltic Sea.
($1 = €0.79)
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