Base oil prices continue to climb
Where there was cautious optimism among lubricant blenders that base oil prices might settle down and Motiva would hold rather than follow other base oil refiners who raised postings two weeks ago, many got word that Motiva will now increase Group II by 30 cpg and Group III by 35 cpg. The increase is effective, May 19, 2021.
Including this latest increase, in the last 30 days alone blenders have seen Group II increase by 30-40 cpg and Group III move up by 65-70 cpg. Adding to the challenge of the numerous rounds of base oil price increases by all refiners in 2021, blenders report that base oil supply remains tight and bright stock is exceedingly difficult to source. In addition, there is tight supply of additives and some packaging materials.