US Motiva reduces January Group II base oil prices

08 January 2014 22:33 Source:ICIS News

HOUSTON (ICIS)--US Group II base oil producer Motiva has announced that it will reduce its posted prices effective 10 January, market sources confirmed on Wednesday.

Motiva made its announcement on Wednesday morning, lowering its light viscosity and mid viscosity base stock prices by 25 cents/gal on an FOB (free on board) USG (US Gulf) basis.

Heavy 600 grade base stock prices will move down 30 cents/gal on the same basis and date.

Widely discounted prices in the US base oil market and West Texas Intermediate (WTI) crude oil prices under $100/bbl provided the platform for the posted price reduction.

Motiva’s posted price on its 100/120 light viscosity base oil was at $3.62/gal FOB USG prior to the January reduction announcement.

Other Group II producers have not confirmed price announcements as of Wednesday.

US Group II base oil producers include Chevron, Calumet, Flint Hills Resources and Phillips 66.

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By Judith Taylor