|  Privacy & Cookies  | Terms & Conditions. U.S. Base Oil Price Report - Lubes'N'Greases The United States base oil market was jolted out of its fairly placid state by price increase announcements this week. Prospects of an imminent restart assuaged some of these concerns. Test Report No. Futures Market Near for Lithium Hydroxide. The company explained that the adjustments were prompted by changing market conditions including heightened demand and short supply, as well as increased production costs. (Prices are FOB basis, in U.S. dollars per gallon and U.S. dollars per metric ton). When asked about the future of electric vehicle sales, respondents to this question of the Base Oils 2021 Community Report survey made a three-way tie between the pandemic delaying the transition to e-mobility, it having no effect and bringing it forward. According to reports, ExxonMobil and Motiva had declared force majeure on base oil production and placed customers on allocation. DUBLIN--(BUSINESS WIRE)--The "Asphalt, Lubricating Oil and Grease Global Market Report 2021: COVID-19 Impact and Recovery to 2030" report has been added to ResearchAndMarkets.com's offering. The latest series of base oil price increases placed additional pressure on finished lubricant, grease, additives and related products manufacturers. The company explained that the adjustment was due to the continued increases in base oils, additives, resin, corrugated, steel and freight. thenic base oils. Previously, Cross Oil, Calumet and Ergon had announced increases of 20 cents/gal for naphthenic oils, which were implemented on March 23 in the case of Cross Oil and Calumet, and on April 5 in Ergon’s case. Both producers have resumed production and have ramped up rates, but shipment delays were still expected as the suppliers were catching up with orders. The steeper base oil prices prompted lubricant, additives, grease and other finished products manufacturers to announce price increases of their own to offset the higher costs of raw materials and other factors such as freight rates. A U.S. supplier was understood to have offered light grades to Mexico, a market that is struggling to get a hold of base oil shipments, particularly mid-viscosity and heavy grades. Sharma, B.K., Adhvaryu, A., Perez, J.M., Erhan, S.Z. base oil used in their formulation. On the naphthenic base oils front, producers nominated price increases of 25, 30, 35 and 40 cents per gallon, depending on the product and the location, for early May implementation. Lubes’n’Greases Publications shall not be liable for commercial decisions based on the contents of this report. Advanced Lubrication Specialties, Old World Industries, Smitty’s Supply, Amalie, Cam2 International, Warren Oil and a number of other manufacturers were reported to have announced similar adjustments. Ongoing operating rate reductions at various refineries, planned and unplanned shutdowns since the third quarter of 2020, and healthy demand have all contributed to a tightening of supply of most base oil grades. The oxidation stability of these greases are very high, even better than commercial mineral-oil based greases, while friction and wear properties are at par with commercial greases. In general, lubricants consist of approximately 75 to 90 percent base oil. Silicones are greases in which both the base and the oil are synthetic. Based on this work a company is interested in bio-based rail track greases. Lubes’n’Greases Publications shall not be liable for commercial decisions based on the contents of this report. The Argus Base Oils service is your single, reliable source for weekly global base oil news, pricing and analysis. Ergon’s paraffinic API Group I and Group II refinery in Newell, West Virginia, was slated to begin a 30-day turnaround on April 9. A majority of manufacturers announced increases between 3% and 15%, to be implemented in late April and May. implemented in April.”. In this report, 2015 is considered as the base year and forecast period is 2016 ... in petroleum oils. Other paraffinic producers increased posted prices by 15 cents/gal, 30 cents/gal and 40 cents/gal, depending on the viscosity and the producer. Posted Paraffinic Base Oil Prices. There were also ongoing and imminent turnarounds taking place at large facilities in Europe and Asia, which further limited import options for many consumers, particularly in the Group III segment. This report provides strategists, marketers and senior management with the critical information they need to assess the global asphalt, lubricating oil and grease market as it emerges from the COVID … You consent to our cookies if you continue to use this website. Over 25 years of reporting on key chemicals markets, including Base oils-Lubes, has brought global recognition of our methodology as being unbiased, authoritative and rigorous in … Omni Industries will be increasing the price of all lubricants, greases and chemicals by up to 15%, with an effective date of May 7. There was also talk about a possible price adjustment in downstream finished lubricants, greases and additives segments on the back of rising base oil prices. Refineries will likely ramp up rates in response to increased fuel consumption in the U.S. as the population’s mobility picks up and the country heads into the summer driving season, and more businesses re-open on the back of a widely implemented COVID-19 vaccination campaign. Gabriela Wheeler can be reached directly at gabriela@LubesnGreases.com. Archived issues of the old Lube Report can be accessed here. A majority of buyers continued to take as much product as possible under contract and tried to forego purchasing material in the spot market as there was not much availability and prices have skyrocketed. The producer’s Group II grades were not adjusted at this time. Upstream, crude oil futures climbed nearly 2% on Monday as there was fresh optimism about the pace of coronavirus vaccinations in the U.S. and after the Yemen-based Houthi movement said it fired missiles on Saudi oil sites, increasing tensions in the Middle East. Both producers were heard to have lifted these measures as their plants were running well, according to sources, but this could not be confirmed with the producers directly. Motiva increased its API Group III posted prices this week, completing a round of hikes that started on April 26 with Ph ... - By Gabriela Wheeler, Lube Report temporarily publishes Ray Masson’s column every other week. The tight base oil supply situation was not expected to see any relief soon. The heavy viscosities and bright stock were particularly snug, sources emphasized. The Argus Base Oils service includes the only publication to capture the full spectrum of base oils trade in the international market in a single report. Motiva operates a Group II and Group III base oil plant in Port Arthur. Motiva raised its Group III prices by 30 cents per gallon, effective May 11. Other base oil producers were dealing with the delayed resumption of output, following routine turnarounds. This report analyzes the worldwide markets for Lubricating Oils and Greases in Million Gallons by the following Product Segments: Automotive Lubricants (Engine Oils & … Lube Report Lube Report is Lubes’n’Greases newsletter delivered via email and online. On the paraffinic front, producers had raised posted prices by 20 to 55 cents per gallon between March 19 and April 1, and no further movements were reported this week. According to reports, ExxonMobil communicated a posted price hike driven by tight supply and rising crude oil and feedstock prices. Historic and current base oil pricing data are available for purchase in Excel format. Temporary idling production on the two CDUs reduces production at the Motiva refinery by 45%. “The turnaround schedule was extended approximately one week due to COVID-19 precautions and increased scope of work. On Tuesday, May 11, June WTI futures settled at $65.28 per barrel on the CME/Nymex, and had closed at $65.69/bbl on May 4. The composition of base oil in the formulation of lubricants is primarily between 75-90%. Brent futures for June delivery settled at $63.67/bbl on the CME on April 13, from $62.74/bbl on April 6. All Rights reserved. www.entrepreneurindia.co Asia-Pacific represents the largest and the fastest growing ... Industrial lubricants, oils and greases This website uses cookies, including from third parties, to improve your user experience and for website analysis and statistics. Motiva increased its API Group III posted prices this week, completing a round of hikes that started on April 26 with Ph ... - By Gabriela Wheeler, Lube Report temporarily publishes Ray Masson’s column every other week. The company announced that it had lifted the force majeure on April 8. Base Oil Price Report - March 9, 2021) “Amajority of petrochemical plants experienced production issues during the cold snap a few weeks ago.”(Lubes’n’Greases–U.S. The steeper base oil prices prompted lubricant, additives, grease and other finished products manufacturers to announce price increases of their own to offset the higher costs of raw materials and other factors such as freight rates. Values have been largely range-bound over the last three weeks because expectations about an economic recovery in the U.S. were offset by worries about surging infections in Europe and a slow vaccine rollout in other parts of the world. The refinery began its deliberate multistage restart process on May 5, 2021.” Although some delays in customer shipments are anticipated, the company was working diligently to minimize supply disruptions during the startup from the planned maintenance and will continue to keep customers apprised of the situation. Sources said that contract shipments were suffering delays, and that there would likely be no spot volumes available for months. Bright stock and Group II+ and Group III cuts were adjusted up by 40 cents/gal. U.S. producers who have continued to participate in the export market have focused on shipping product to India, Israel and Brazil, but Indian demand has weakened on uncertainties related to an alarming flare-up in coronavirus infections, forcing sellers to look for opportunities in other destinations. Spot supplies of most grades remained very limited, but the light grade inventories have started to improve, sources said. Lubes’n’Greases Publications shall not be liable for commercial decisions based on the contents of this report. Ergon communicated a slight delay in the restart process of its paraffinic refinery in Newell, West Virginia, after completing a maintenance turnaround that began on April 9. Motiva increased its API Group III posted prices this week, completing a round of hikes that started on April 26 with Phillips 66 implementing a price increase on its Group II+ and Group III base oils. The steeper base oil prices and production costs triggered another round of downstream increases for lubricants, additives and other finished products. Aside from ongoing maintenance shutdowns and unplanned extensions to recent turnarounds at base oil facilities, the shutdown of the Colonial Pipeline over the weekend was expected to cause feedstock supply disruptions and affect base oil production. : Super Lube® Oil . At that time, a number of base oil plants and petrochemical plants had suffered unexpected outages caused by freezing temperatures in Texas and several other states. These adjustments come on the heels of a previous round of markups that was mostly implemented during the first half of April and had largely emerged in response to base oil price increases. Mandatory Reporting Fact Sheet on Oils, Lubes and Greases This fact sheet is designed to help businesses involved in the production, import, export and sale of petroleum-based oils, lubricants and greases (POLG) understand what mandatory reporting of petroleum statistics means for them. The company hoped to manage product inventories so as to minimize supply disruptions during the turnaround period and startup. Production had already suffered a setback following a winter storm in mid-February that had forced the producer to shut down operations. Keep up to date with the global lubricants industry every week. All Rights reserved. While the plants were heard to have increased operating rates and were running well, the suppliers were still dealing with shipment delays. However, most participants did not expect a noticeable improvement in base stock supply levels until the summer. LNG Publishing | 1,833 followers on LinkedIn. Many of these manufacturers announced price increases of up to 12% on their products to be implemented in early June. | Publisher of the Lubes 'n' Greases family of lubricant industry publications. A rerefiner was also expected to shut down its plant in Ohio for a short turnaround sometime in the second or third quarter of the year. These would be in addition to a previous round that called for hikes of 3-15% for late April/early May implementation as suppliers tried to offset the steadily rising cost of base stocks and other raw materials. His EMEA Base Oil Price Report will appear aga ... - By Ray Masson, Base oil prices continued on an upward trek in Asia, but buyers have grown increasingly cautious regarding volumes and p ... - By Gabriela Wheeler, © LNG Main Copyright 2021. Some of the pressure on prices coming from the crude oil and feedstocks side has weakened given the recent slip in oil values. Motiva did not comment on the status of its operations. On Tuesday, April 13, May WTI futures settled at $60.18 per barrel on the CME/Nymex, and had closed at $59.33/bbl on April 6. Most paraffinic producers had also implemented markups at that time, and no fresh initiatives surfaced this week. HollyFrontier restarted its Group I plant in Tulsa, Oklahoma, and Calumet its Group I and Group II unit in Shreveport, Louisiana, in April, following extended turnarounds that lasted almost two months, instead of the planned 30 days, due to damages brought about by extreme winter weather. Gains were capped by concerns about the pausing of the Johnson’s & Johnson’s vaccine and increasing coronavirus cases in some states. Lubes'n'Greases original online newsletter, Lube Report, was published from September 2001 until December 2017, when we launched Lube Report Americas and Lube Report EMEA. A second naphthenic producer had suffered a production setback during the winter storm in February and had remained off-line for about a month, but had not declared force majeure. 2005. Sopus (Shell) was reported to have announced a 6% increase, effective May 3. A similar scenario was observed on the naphthenic side of the business, with the heavy grades described as very snug. Firm crude oil and feedstock values also offered support to the higher base oil price indications. A vast majority of paraffinic and naphthenic producers have now implemented increases that went into effect in late April and early May. While prices have come off of recent highs, numbers have shown a steady climb since the beginning of the year. As a result, availability of Group I grades, and bright stock in particular, was not expected to improve until June or July. Impacts (N/A) Publications. 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