Singapore’s base oil prices rise on firm demand, tight supply

18 March 2013 08:52  [Source: ICIS news]

SINGAPORE (ICIS)--Singapore’s base oil ex-tank prices are rising as a result of firm demand and lack of spot cargo availability, market sources said on Monday.

The recent tight availability amid regional cuts in Group I base oil production in southeast Asia had reduced the supply of bulk cargoes in Singapore.

As a result, several traders and buyers were out in the market looking for ex-tank cargoes which were the only other option available.

“The increased in demand of ex-tank cargoes has supported higher prices as sellers are taking advantage of the pickup in demand to raise offers,” a buyer said.

Moreover, the recent announcement by a key Singapore based refiner to raise prices on heavier grades of base oils on an ex-tank basis by $30/tonne with effect from 19 March has also prompted several other sellers in the region to follow suit.

Prices of SN150 were up by $10/tonne on the low end of the range at $980-1,010/tonne ex-tank Singapore, prices of SN500 were up by $20/tonne on the high end of the range at $1,060-1,100/tonne ex-tank, while bright stock prices gained $20-40/tonne at $1,130-1,170/tonne ex-tank Singapore.   

Some market participants expect that a Singapore refiner may raise prices further in the next few weeks, prompting many buyers to start building inventory ahead of such a rise.

($1 = €0.77)

By: Serena Seng

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly