12 February 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European domestic Group I base oil prices have stagnated this week, as buyers resist producers' targeted hikes, sources said on Tuesday.
Domestic prices continue to hold with producers unable to increase prices and ease their margins.
Sufficient supply and the absence of a consistent push for higher numbers by all sellers, contributed to the price stability seen.
“There is alot of resistance to price increases. We tried to push but nothing came out,” said a northwest European producer.
Domestic prices remain at the lowest level since September 2010.
At present, Brent crude oil is priced at over $115/bbl and VGO was last heard priced in the high-$800s/tonne FOB.
This clearly shows the pressure on current base oil production margins. As result, many producers continue to operate at reduced rates.
European solvent neutral (SN) 150 domestic prices were assessed stable at $1,035-1,055/tonne FOB NWE (northwest Europe) this week, by ICIS.
($1 = €0.75)
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