HOUSTON (ICIS)--US naphthenic base oil prices are steady on good January demand, despite this week’s reductions in the paraffinic base oil sector.
Naphthenic oils, also called pale oils, are experiencing healthy demand in a number of end-use sectors.
Automotive tyres and electrical transformer oils are two end-use areas that are offering support to ongoing firmness in pale oil prices.
In those tiers, Pale 2000 heavy grade base oil prices were most recently assessed by ICIS at $3.50-3.92/gal FOB (free on board) USG (US Gulf), while Pale 60 light grade was assessed at $3.65-3.88/gal FOB USG.
Upcoming planned turnarounds are encouraging producers to monitor inventories and build up naphthenic base oil supply to sustain obligations during the downtime periods.
West coast producer San Joaquin Refinery (SJR) has a two-week maintenance turnaround planned for late February, while naphthenic producer Calumet is planning two weeks of maintenance downtime in mid-March at its
SJR produces 8,100 bbl/day of naphthenic oils at its
Cross Oil has a 30-day turnaround planned for the first quarter at its 5,000 bbl/day Smackover, Arkansas, base oil plant, but the company has not decided upon dates.
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