26 February 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--European Group I base oil export prices have climbed $15-20/tonne (€11-15/tonne) this week, depending on grade, because of rising demand and reduced supply, sources said on Tuesday.
Traders talk of a shortage of cargoes in the market and those sellers with cargoes are targeting higher prices.
There is demand for base oil across Africa, in the Middle East, in the east Mediterranean Sea region and Turkey, but insufficient supply to cover it, traders said.
“[There is] a massive lack of availability,” said a European trader.
“All these run cuts are now having an effect,” it added, referencing the widespread production cuts across Europe.
European SN150 export prices were assessed up $20/tonne to $960-990/tonne FOB (free on board) Europe, by ICIS.
European SN500 and brightstock export values were assessed up $15/tonne to $1,005-1,025/tonne FOB and $1,055-1,085/tonne FOB respectively.
($1 = €0.76)
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