LONDON (ICIS)--Confirmation was received on Tuesday of prices in the domestic European base oil market rolling over from January into February.
One refiner in northwest Europe said that while production margins remain narrow, particularly with crude oil prices having increased, the market is balanced and there was no strong justification for increasing base oil prices.
“We would be uncompetitive [if we had increased prices],” the refiner said.
Another northwest European refiner agreed, even speculating that prices would also be rolled over again for March.
Demand is stable, with a no significant variation from the preceding few weeks. The second refiner described demand as “not fantastic.”
Truck prices are assessed as follows: SN150 at €815-845/tonne FCA (free carrier) NEW (northwest Europe); SN500 at €825-855/tonne FCA NWE; and brightstock at €920-955/tonne FCA NWE.