The anticipated reshaping of the U.S. and global base oils market is gathering pace. The start-up of a number of base oil plants producing premium grade base oils around the world is adding to the oversupply of the lubricant feedstock. With supplies plentiful and margins under pressure, the new supplies are also speeding up the trend toward much larger producers of premium-quality base oils on a global scale, in place of smaller, regional Group I producers. Commercial production at Chevron's new 25,000 barrels/ day Pascagoula base oils plant in Mississippi began in July. Production also began in July at Hyundai-Shells new Group II plant in South Korea. SK-Repsol's Group III base oils plant in Spain began operations in September.
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