US Group I base oil posted prices rise on higher crude costs

Source: ICIS News

2018/10/11

HOUSTON (ICIS)--US Group I base oil posted-price-increase announcements emerged this week as rising crude pressured producers to seek to raise market prices.

According to buyers and sellers, ExxonMobil increased its Group I posted prices by 20 cents/gal on all grades, including brightstock, effective 9 October.

ExxonMobil does not discuss its prices per company protocols.

Paulsboro Refining Co (PRC) confirmed it is raising Group I posted prices on all grades by 20 cents/gal effective on 15 October.

HollyFrontier confirmed on Thursday that it will increase its Group I posted prices by 20 cents/gal on all grades except brightstock. The brightstock posted price will increase by 10 cents/gal, with all changes confirmed to become effective 12 October.

Group I producer Calumet said it continues to gauge pricing, confirming it has not as yet made a decision to raise its posted prices.

Posted prices are an announced index price by individual producers. Buyers and sellers do not settle on posted prices but often develop agreements by using these indices.

Following the increases, the ExxonMobil brightstock posted price is at $5.06/gal FOB (free on board) USG (US Gulf).

The following graph shows the price trend for two Group I producers on a light and a heavy viscosity grade.

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