US brightstock prices soar on tight supply

Judith Taylor

10-Mar-2017

US heavy viscosity base oil prices rising on upstreamHOUSTON (ICIS)–US brightstock base oil prices are soaring in the domestic market and at the Brownsville, Texas, location for material moving into Mexico, buyers and sellers said on Friday.

Group I base oil producers are increasing posted prices on brightstock, with ExxonMobil moving this heavy grade up by 15 cents/gal effective 9 March and Calumet announcing it will increase its brightstock posted prices by 15 cents/gal effective 13 March.

For Calumet’s brightstock, the posted price is at $4.64/gal after the 13 March increase. ExxonMobil’s posted price is at $4.46/gal following its increase.

All prices for ExxonMobil are obtained from market sources as ExxonMobil does not comment on its prices.

Another indicator on the upward pressure on brightstock prices is coming from the bid/offer levels and some finished transactions at the Brownsville, Texas, location where base oils frequently move into Mexico. These prices are typically the lowest in the market but this week buyers said finished transactions on brightstock took place in the mid-$2.50s/gal and offers from all suppliers are moving up quickly.

Naphthenic producers said calls are coming in for orders on heavy grade 2000 viscosity, pushed by the market’s need for heavy grades and the tight supply of brightstock.

Brightstock is the heaviest viscosity grade made in the paraffinic base oil sector and is only produced by Group I solvent neutral processes.

The following chart shows the price trend on the Brownsville, Texas, range assessments.

 

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