US Group II base oil prices continue trek upward

14 August 2013 20:53  [Source: ICIS news]

US Group II base oil price increases continueHOUSTON (ICIS)--US Group II base oil increases continue to emerge, as Calumet Specialty Products announced on Wednesday it will raise prices on all grades of its base stocks in that tier.

Calumet confirmed it will increase its light viscosity Group II base oil grades by 10 cents/gal and its mid viscosity stock by 15 cents/gal effective 15 August.

Rising feedstock crude oil prices and more fluctuations in the vacuum gas oil (VGO) daily price levels underpinned the increase announcement, sources said.

NYMEX futures on benchmark West Texas Intermediate (WTI) crude oil closed at $106.85/bbl on Wednesday, up slightly from the previous close. This kept the plus-$100/bbl price level consistent with the past several weeks.

Brent crude was at $110.20/bbl at the close.

Calumet’s increase announcement followed an earlier Chevron announcement of 26 July that bumped up the Chevron Group II base oil prices by 25 cents/gal.

Following Chevron’s announcement, buyers and sellers confirmed that Group II producer Motiva announced it would raise its light 100/120 grade base stocks by 10 cents/gal effective 8 August.

Motiva is also raising its heavy grade 600 stock by 10 cents/gal on the same effective date, along with a 15 cents/gal increase on its mid viscosity 200/220 grade base oils.

In the Group II+ tier, sources confirmed Exxon announced it is increasing both its grades by 15 cents/gal effective 16 August.

Exxon does not comment on prices.

Other Group II and II+ base oil producers did not yet confirm price moves, although several were said to be considering doing this.

Prices for Chevron’s heavy grade 600 base oil are at $5.20/gal (€3.90/gal) following the late July increase, while Motiva’s 600 stock is at $4.55/gal after its increase on posted prices.

($1 = €0.75)

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By: Judith Taylor
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