US ExxonMobil to increase Asian base oil prices from 30 April

13 April 2012 11:11  [Source: ICIS news]

SINGAPORE (ICIS)--US oil major ExxonMobil will increase the term prices of its base oil bulk cargoes in Asia by $40-50/tonne (€30-38/tonne) with effect from 30 April, the second such increase this month, market sources said on Friday.

The price increase will be applied to the supply of both Group I and II base oil , sources said.

Offers for SN150 and 150N will be revised up by $40/tonne, while prices of the higher-viscosity grades of SN500 and 500N will see a larger price increase of $50/tonne. Brightstock will cost $40/tonne more.

ExxonMobil last implemented a $20-40/tonne price hike on 10 April.

The latest round of price increase is in line with a firmer international market, according ot market sources.

Export prices of Group I SN150 and SN500 in Asia has risen by $80-100/tonne in the past five weeks as a result of high crude prices, with tight supply in Europe helping to absorb the surplus Asian cargoes.

The sentiment of buyers, however, is bearish.

“Crude prices have started to come off and the downstream demand in China is very slow,” an end-user in China added.

($1 = €0.76)

By: Yeow Pei Lin

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