US naphthenic base oil prices up on healthy supply/demand
Judith Taylor
26-Mar-2014
HOUSTON (ICIS)–US naphthenic base oil spot prices are moving up on healthy supply/demand fundamentals that support recent producer increase initiatives, sources said on Thursday.
Pale 60 naphthenic oil spot prices were assessed by ICIS at $3.79-4.00/gal, gaining about 14 cents/gal across the spread.
Pale 60 oils are used in transformer oils and other electrical applications, with good export options typically available for US material alongside strong domestic demand.
Pale 100 naphthenic base stock spot prices were assessed at $3.55-4.02/gal, taking the full impact of the 10-25 cents/gal March increase initiative from producers.
Heavy viscosity Pale 1200 oil spot prices were assessed at $3.50-4.02/gal, gaining 10-15 cents/gal across the spread.
Producers announced 10-25 cents/gal increases in mid-March, with the amount varying by producer and by viscosity grade of the oil.
Naphthenic base oil supply has been crimped by a spate of Q1 maintenance turnarounds, with the last of these – Cross Oil – confirmed entering restart mode this week at its Smackover, Arkansas, facility.
Naphthenic oils are referred to as “pale” oils because of the light colour of the oil. These oils have a wide variety of end-use applications ranging from electrical transformer oils to printing inks and automotive tyre uses.
The variety of end use applications allows pale oils broad platform of demand support.
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