10 December 2012 22:03 [Source: ICIS news]
HOUSTON (ICIS)--US Group I base oil producers have announced a second round of price reductions for the fourth quarter, buyers and sellers confirmed on Monday.
Buyers confirmed ExxonMobil announced posted price decreases of 18 cents/gal on all Group I viscosities, except brightstock. Brightstock prices were reduced by 28 cents/gall, with all of ExxonMobil’s price changes effective on 6 December.
Paulsboro Refining Co (PRC) said it would follow the Group I price move by the same amounts, effective on 11 December.
HollyFrontier confirmed it would decrease each of its Group I viscosity grades by 16 cents/gal, except brightstock, effective on 10 December. Holly’s brightstock prices will decrease by 26 cents/gal, effective on the same date as the other viscosities.
Calumet said its Group I prices will decrease by 18 cents/gal on its 700 viscosity base stock and by 28 cents/gal on its brightstock product, both with an effective date of 12 December.
US base oil prices moved down in November with Group I reductions ranging 20-21 cents/gal, depending upon grade and producer, and Group II reductions of 25-48 cents/gal pushing down the overall price picture.
Group II base oil prices were steady in December, with no further reductions after November.
A number of market participants expected the November Group I cuts to be the last for the year, with the December round of price decreases surprising some players.
The December announcements followed reductions in the European market, a supply region dominated by Group I production.
Slow global demand and growing oversupply in Europe and Asia combined with moderated crude oil prices to push the December reductions, sources said.
Following the price decrease, ExxonMobil’s low viscosity 100 grade Group I base oil prices were at $3.52/gal, with its brightstock grade at $4.21/gal.
ExxonMobil prices are provided by market sources.
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