12 June 2012 23:12 [Source: ICIS news]
HOUSTON (ICIS)--US base oil prices are falling on lower feedstock crude oil costs, buyers and sellers said on Tuesday.
Group I base oil producers confirmed an array of price reductions in all viscosities, led by HollyFrontier.
Group I base oil producers ExxonMobil, Paulsboro Refining Company and Calumet made reduction announcements, ranging 13-40 cents/gal, depending upon the grade and the producer. Effective dates were between 11 June and 14 June, depending upon the supplier.
Holly Frontier’s price reductions ranged 25-45 cents/gal, depending upon the base oil grade, effective 6 June.
Group II producers also announced reductions. Phillips 66, Chevron and Calumet confirmed reductions ranging 20-40 cents/gal, depending upon grade and supplier, with effective dates between 12-15 June, depending upon the producer.
These announcements followed 20-25 cents/gal lower spreads confirmed by Flint Hills Resources (FHR) effective 5 June.
Following its price decreases, Group I producer HolllyFrontier’s brightstock posted price was $5.01/gal. In Group II prices, FHR’s light viscosity grade was priced at $4.44/gal following its price reduction.
Group II+ suppliers Phillips 66 and ExxonMobil are also lowering prices in that base oil tier by 25-27 cents/gal, with effective dates of 13 June. Phillips 66 confirmed its announcements, while the ExxonMobil ranges and dates were verified by market participants including buyers, but not by ExxonMobil.
In Group III base oils, Phillips 66 confirmed it would reduce both its grades by 25 cents/gal, effective 13 June.
SK Lubricants and Motiva did not make price announcements.
Price reductions were largely supported by falling crude oil costs, with a June dip in the feedstock's price below $90/bbl pushing suppliers to make adjustments.
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