Base oils-Lubes Prices, markets & analysis
For clear insight into regional Base oils-Lubes markets, you need in-depth price reports direct from those regions.
That’s why ICIS maintains a network of locally based reporters, providing not just price assessments but market commentary and analysis.
Use ICIS information to:
- Follow fluctuations and understand factors driving them
- Input into your own internal analytical models
- Clarify settlements and contracts
- Inform negotiations
Base Oils-lubes overview Transcript
Base Oils are a synonym for base-stocks, they are mixed with additives to form finished lubricants. Biggest end-use is the automotive sector and there’s a big trend right now for higher quality base stocks, so we’re actually seeing some consolidation of our Group 1 Base Oil plants and a bigger move to Group 2, Group 3 and even gas-to-liquids plants.
Automotive emission standards are the biggest factor affecting base oils.
There’s also a seasonality factor. Heavy drive season that’s usually May to September, that’s when demand is the strongest for base oils.
Base oils-Lubes news and market information products from ICIS
We offer the following regional Base oils-Lubes coverage to keep you informed of factors and developments affecting prices in the Europe Base oils-Lubes marketplace.
Price Reporting – More information about the price reports we publish on Base oils-Lubes
Independent price assessments and market coverage
Price History – More information about the historical price data we publish on Gas
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News & analysis
News & Analysis - News & market analysis specifically relating to Base oils-Lubes
Breaking news of latest developments affecting the markets.
Insight and analysis of factors driving prices.
Updated to Q4 2014
Having held largely steady throughout the summer, European Group I base oil prices collapsed throughout the fourth quarter, starting with the export market from the start of September and followed by the domestic market two weeks later. Prices began to stabilise around mid-December but further decreases could not be ruled out at the time of writing.
Various factors come together to create substantial downward pressure on prices. Firstly, underlying demand has been poor for much of 2014 as a result of challenging conditions in the finished lubricants market. On top of this came the new volumes of Group II and Group III base oils with major new plants in the US and Spain. These grades are of higher quality than Group I but cost less to produce, and have been aggressively marketed. A significant rationalisation of Group I capacity in Europe is expected.
Finally, crude oil prices – and therefore those of vacuum gasoil (VGO), the feedstock for base oils – collapsed. Not only did these collapses filter down directly to base oils by way of improved margins, but they also exacerbated already significant oversupply. With crude and VGO prices so low, refineries and base oil plants were run at high rates, with refiners making money despite falling product prices.
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ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.
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