Base oil prices rise as avails tighten

摘要

New York-US base oil producers increased their posted prices in July,the fourth time since February,market sources said.For example,posted prices for Bright Stock,one of the market's strongest grades,averaged nearly 2.20/gal in January.Today the average is up 22% at around 2.69/gal.While sources attributed the increase partially to crude costs,the main reason for the higher prices has been tight avails.Many refiners have shifted production to products such as gasoline,diesel and heating oil and away from base oil output,sources explained.Traditionally,base oils are a specialized product that command premium prices,so production typically has been adequate,one industry executive observed.However,lube output is now challenged by products currently fetching higher-than-usual margins,and sold in much higher volumes.