19 July 2012 17:06 [Source: ICIS news]
HOUSTON (ICIS)--US base oil producers announced July price drops in all tiers, following decreases in Group II stocks earlier in the month, sources said on Thursday.
HollyFrontier confirmed decreases of all grades in its Group I stock, ranging from 27 cents/gal on its light grade 100 series to 40 cents/gal on its 250 viscosity, with all reductions effective on 13 July.
Buyers and market sources confirmed that ExxonMobil announced a 29 cent/gal decrease across all grades on its Group I and II+ base oils, effective on 17 July.
HollyFrontier’s 29 cents/gal decrease on its brightstock put the posted price at $4.72/gal, basis mid-continent, while the ExxonMobil price for brightstock product is at $4.55/gal, basis Gulf coast, following the decrease.
Other Group I producers verified price decreases, with Paulsboro Refining taking prices down by 29 cents/gal on all grades, effective on 20 July. Calumet is going down by 40 cents/gal on its 700 viscosity and by 25 cents/gal on its brightstock, effective on 17 July.
Calumet also announced its Group II base oil prices decrease, effective on 17 July, moving down 30 cents/gal on it light-viscosity grades and by 35 cents/gal on its mid-viscosity 300 series.
Other Group II producers had announced reductions earlier in July.
In Group II+ and III tiers, ExxonMobil’s 17 July announcement took effect, while SK Lubricants said it would decrease all of its grades by 35 cents/gal, effective on 13 July.
Price reductions in Group III put 4cSt (cenistoke) and 6cSt material at $5.76/gal, while the 8cSt reduction brought that viscosity grade to $5.84, basis Gulf coast.
Price decreases were primarily driven by deep price reductions in the other primary global base oil supply regions, Asia and Europe, where stalled demand is matched to growing supply.Stalled Asian and European demand has buyers globally sidelined, which is contributing to the drive towards US price reductions.
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