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PRICING 2012

Is the Spread Dancing to the Beat of a Different Drummer?

December 14, 2012 – As of today, the spread between Brent Crude and 100N Group II base stock is just under $1.25 a gallon. This is a significant decline from an average of $1.87 seen from the start of the year to the most recent round of base stock price decreases announced in mid-November.   Interestingly, these price decreases occurred during a period where the price of crude oil has been relatively stable.  As noted in previous issues of JobbersWorld, this suggests that base oil prices are reacting more to the supply and demand balances of base oil (supply being long) than they are to current crude oil prices.  And with base oil demand in the US and Europe at best soft, Chevron’s Pascagoula plant gearing up, new re-refiners come on line, and GTL becoming a reality, you can bet we are looking at some interesting times ahead. Click for More

Add BP/Castrol to the List of Lubricant Suppliers Announcing Price Decreases.

November 29, 2012 –  BP/Castrol marketers in the US got the word yesterday that BP will reduce list prices on selected Consumer and Commercial Automotive lubricants and ancillary products effective January 14, 2013. The price decreases will range from $0.12 to $0.24 a gallon.  Click for More

The Details of Decreases

November 19, 2012 – In less than a week after the announced price decreases on base oils, two majors announced price decreases on finished lubricants. A third major does the same. The first was Phillips66 on November 9, 2012, Phillips66 announced that effective November 12, 2012 it will decrease prices for most finished lubricants by $0.30 a gallon, and $0.02 a pound on grease. Products exempt from this decrease include certain fully synthetic HDEO, ATF, gear oils and industrial lubricants, as well as private label products. This was followed by an announcement by Chevron of a general posted price decrease for its lubricants, gear oils and greases by up to 4% for most SKU’s. The effective date of this decrease is December 10, 2012. It should be noted that commercial and Industrial synthetic products, coolants and fuel additives are excluded from the decrease. These decreases are followed by CITGO announcing it will implement a finished lubricant price decrease for marketers in the CITGO, MileMaster and Mystik brands. This decrease, which takes effect December 16, will average $0.30 a gallon on lubricants and $0.02 a pound on grease. This decrease, however, does not include CLARION white oils, water glycol products and process oils. In addition to the majors, Amalie announced that with the exception of its Greased Lightning branded automotive chemicals, Amalie Oil Company will reduce the price for all its oils and chemicals, that are shipped on or after November 26, 2012, by $0.32 per gallon. In addition, it will reduce grease prices by $0.04 a pound. Click for More

Prices on the Move … down

November 13, 2012 – First Base Oil… On November 7th, Motiva announced a base oil price decrease of 25 to 38 cents a gallon, depending on grade. Then on November 8, Chevron announced a price decrease ranging from 25 to 38 cents a gallon for its base oils. On the same day, Phillips announced its base oil prices would decrease from 25 to 48 cents a gallon. Following right on the heels of these price decreases, Flint Hills announced on November 9th that it too is decreasing its base oil prices by 23 to 40 cents a gallon, again depending on grade. But if we focus on the work horse grades, these decreases amount to close to 40 cents a gallon. Next up: Finished Lubricants… Although rare, whereas we have seen announced price decreases on base oils in the past, market dynamics around last week’s decreases have some scratching their heads. This is because in less than a week after the announced price decreases on base oils, two majors announced price decreases on finished lubricants.Click for More

The Price Spreads are Speaking

September 5, 2012 With the price of crude moving up while the price of base oil was trending down and is now flat, it’s clear the spread between the two has increased. Traditionally, this means something has got to give. And if history repeats itself, unless the trajectory of crude prices soon changes course, it’s likely the spread will compress as a result of increases in base oil prices.  And when and if that happens, it’s not long before the price of finished lubes follows. Click for more

Lubricant Prices up While Crude Heads Down

May 22, 2012 – As reported by JobbersWorld over the last month, most of the majors and independent lubricant manufacturers announced price increase on finished lubricants taking effect this month and next. Whereas many marketers anticipated these increases were imminent based on the trajectory of crude oil prices since the beginning of the year, some are now questioning if the justification for the increases can be sustained in light of the fact that crude oil prices have been retreating over the last few weeks. Click for more

Safety-Kleen and ARG Announce Price Increases

April 30, 2012 – Safety-Kleen announced a price increase on blended products of $0.25 a gallon. This increase is effective May 20, 2012. Effective May 21, 2012, prices for motor oil, ATF, gear oil, greases and industrial lubricants sold by American Refining Group will increase by $0.35 a gallon. Some of the company’s synthetic and specialty lubricants, however, increase at a higher rate. Click for more

Chevron, ConocoPhillips, and Petro-Canada Announce Price Increases

April 24, 2012 ConocoPhillips advised it marketers it will raise its finished lubricant prices 3 to 5% effective May 24, 2012. Chevron announced it will increase the price of it lubricants by 3 to 6%. This increase is effective May 21, 2012. Petro-Canada advised its marketers in the US of a price increase of 3 to 6%. This increase is effective May 22, 2012. This price increase reportedly excludes Process Oils (Paraflex) and Purity FG White Oils.Chemlube also announced a price increase; $0.30 per gallon on all bulk lubricants except fully synthetic products which are increased by $0.40 per gallon. These increases are effective May 10, 2012. Click for more

Looks Like Another Round of Price Increases 

April 17, 2012 – Shell announced a general price increase for its lubricants of 4%. This increase is effective May 19, 2012. Shell says the increase is due in part to increasing costs of raw materials used in production and delivery of its products. Warren Oil announced a price increase of $0.30 a gallon on bulk effective May 7, 2012. It will also increase packaged oil prices by $0.35 a gallon on May 21 and grease prices by $0.05 a pound. CAM2 announced a price increase on bulk orders placed after April 27, 2012 and packaged orders placed after May 4. Its bulk lubricant prices will increase by $0.30 a gallon and packaged lubricants will move up $0.35 a gallon. In addition, CAM2’s prices on grease will increase by $0.05 a pound. Smitty’s Supply announced an increase of $0.35 a gallon for both bulk and packaged lubricants and $0.05 a pound on grease. These increases are effective May 1, 2012. Smitty’s attributes these increases to increases in the cost of raw materials. Effective May 1, 2012, the Delfin Group announced it will increase the price of its lubricants by $0.25 a gallon. Click for more

Chevron First to Move on Group II

March 27, 2012 – Chevron announced it will increase its base oil prices by $0.20 to $0.25 a gallon. This increase is effective March 28. Click for more

Base Oil Price Outlook 

March 27, 2012 – So here we go in what appears to be another round of base oil price increases. It started with naphthenic base oil, then Group I, and now we are looking at Chevron as the first to move in Group IIs. So what does it mean, where are prices heading? Well if history helps predict the future, we have a good deal to draw from. To start, although there have been some asperities in base oil pricing trends, the trend line is up. Click for more

Base Oil Prices Move Up

March 16, 2012 – Holly announced an across the board price increase on paraffinic base oils of $0.30 a gallon. The increase is effective March 22. Holly is an API Group I base oil producer.  Nynas raises pale oil prices by $0.35 a gallon. San Joaquin Refining – up $0.20 to $0.25 a gallon, Calumet – up %0.25 a gallon, Cross Oil – up $0.25 a $0.35 a gallon, Ergon – up 0.28 a gallon. Click for more

Base Oil Spreads Tightening

Feb. 14, 2012 – The spread between Brent Crude oil and 100N Group II base oil has been trending down since the beginning of the year. If history repeats itself, we can expect to see upward movement in the price of base oil should this trend continue. And when this happens, it doesn’t take long for finished lubricant prices to follow suit.Click for more

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