US Group II base oil prices increase

11 March 2013 21:01  [Source: ICIS news]

HOUSTON (ICIS)--US Group II paraffinic base oil prices are increasing during March, buyers and sellers said on Monday.

Chevron confirmed its 20 cent/gal increase on posted prices for each of its Group II grades from 12 March.

The company said the increases include its Group II heavy vis 600 stock.

Buyers confirmed that Motiva has officially announced increases of  15 cents/gal on its Group II light and mid viscosity products, effective from 11 March. Motiva is not changing posted prices on its heavy grade 600 basestocks.

Group II producer Calumet confirmed that it will raise posted prices for each of its Group II viscosity basestocks by 15 cents/gal from 13 March. The company does not produce a heavy vis Group II base oil.

The Group II price increases follow earlier moves by Phillips 66 and Flint Hills Resources (FHR).

Phillips 66 raised its Group II posted base oil prices by 25 cents/gal on all grades, except heavy viscosity 600, effective from 13 February. Its 600 vis base oil prices did not change.

FHR moved its light grades up by 25 cents/gal effective from 18 February, also refraining from moving prices on its 600 vis.  

Sources said price increases are underpinned by higher feedstock costs, with vacuum gas oil (VGO) premiums to benchmark crude oil West Texas Intermediate (WTI) forming the main plank.

VGO premiums have risen from the mid-$30s/bbl to the low-$40s/bbl during the first quarter of this year.

With the application of its price increases, Phillips 66 Group II light viscosity 70 grade posted price is $3.63/gal, while its unchanged heavy vis 600 remains at $4.50/gal.


By: Judith Taylor
+1 713 525 2653

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