Base Oil Price
Considering the trajectory of base oil prices from 2011 to 2012, one would have expected the price of mid-vis Group II base oils to be at nearly $5.00 a gallon on this date, as illustrated below. But the fact is spot prices fall close to $0.40 a gallon short of that mark. According to those JobbersWorld speaks with, there are two primary reasons why base oil prices appear to be softer than expected. The first is relative stability in the price of crude oil. When this is taken together with soft demand for lubricants in the US market, it’s a tough sell to push up the price of base oils. In turn, it’s also a tough time to push through finished lubricant price increases.
Let us know what you think… Are we looking at a retreat in base oil and finished lubricant pricing, or is this just the calm before the storm of the first round of price price increases in 2012?
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