US paraffinic base oil prices drop seasonally slow demand

23 January 2014 19:51 Source:ICIS News

HOUSTON (ICIS)--US paraffinic base oil prices dropped this week as producers in Group I, Group II, Group II+ and Group III confirmed reductions to posted prices.

In the Group I tier, industry sources said that ExxonMobil dropped its light grade base stocks by 14 cents/gal effective 21 January, with mid-grades reduced by 10 cents/gal on the same date.

Group I producer Paulsboro Refining Company (PRC) confirmed a 14 cents/gal reduction on its light grades and 10 cents/gal on its mid and heavy grades, all effective 24 January.

Neither Group I producer changed brightstock prices.

In the Group II tier, Chevron and Flint Hills Resources (FHR) announced reductions, with Chevron’s prices moving down 25 cents/gal across all grades effective 22 January.

FHR base oil prices were reduced by various amounts per grade, all effective on 21 January.

Base oils in Group II+ and Group III tiers are down by 25 cents/gal across the viscosity grades, with effective dates varying by producer.

After the reduction, ExxonMobil’s Group I 100 viscosity base stock posted price is at $3.53/gal.

In Group II, Chevron’s light vis 100 base oil posted price is at $3.82/gal following the price drop.

Price decreases were driven by seasonally slow Q4 demand from the key lubricants sector that pushed base oil producers to offer heavy discounts between November and January.

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By Judith Taylor