Exxon Mobil cuts base oil term prices in China on soft demand

24 May 2012 09:40  [Source: ICIS news]

SINGAPORE (ICIS)--Oil major ExxonMobil will lower the prices of its Group I and II base oil term supply to Chinese customers by $20-50/tonne (€16-40/tonne) amid weak demand, market sources said on Thursday.

Offers for Group II 150N and 500N will fall by $50/tonne and $30/tonne, respectively with effect from 25 May, the sources said.

Its brightstock prices will decline by $20/tonne, they added.

The price reduction is likely prompted by weak Chinese demand for Group II base oils, which are in ample supply in China.

“A lot of Chinese customers did not take term cargoes this month. This has affected most of the Group II suppliers,’’ an Asian trader said.

The refiner did not change its term prices in other Asian markets, according to market participants.

($1 = €0.80)

By: Yeow Pei Lin

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