Base oils and waxes
Overview
As the world pivots towards decarbonisation, challenges and opportunities loom for base oils production and demand. Staying on top of this market is more important than ever to realise these opportunities and mitigate pricing risk.
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Latest base oils and waxes news
Browse the latest market moving news on the global base oils and waxes market.
US Group II base oil margins mixed, prices steady
US Group II base oil margins mixed, prices steady
Houston, 26 November (Argus) — US Group II base oil margins over feedstocks and competing fuels were mixed for the week ended 22 November because feedstocks fell and fuels rose. Base oil spot prices were steady because surplus availability tightened for the domestic market. The Argus US domestic spot Group II N100 premium to four-week average low-sulphur vacuum gas oil (VGO) rose to $1.12/USG, up from $1.11/USG last week. Margins remained below year-earlier totals of $1.42/USG. The Argus US domestic spot Group II N100 premium to four-week average US Gulf coast diesel fell to 91¢/USG from 93¢ a week prior. Margins remained above year-earlier totals of 82¢/USG. Domestic Group II light- and heavy-grade spot prices were steady as surplus availability decreased. Market participants are still able to find Group II+ re-refined material at a discount to virgin N100, which is putting a ceiling on N100 prices. Some blenders are seeing re-refined prices stabilize as several producers came back from or are preparing for turnarounds. Four-week average feedstock VGO prices declined because weaker crude values outweighed firmer margins for VGO relative to crude. VGO margins rose because supply tightness outweighed continued weak margins for fuel production. The low-sulphur VGO premium to four-week average WTI crude widened to $12.16/USG from $12.06/USG last week. Refiners are still pushing available VGO supplies toward base oils as competing fuel margins remain thin. By Karly Lamm Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Exxon to offer Grp II alternative to bright stock
Exxon to offer Grp II alternative to bright stock
Houston, 20 November (Argus) — ExxonMobil is set to offer a high-viscosity Group II alternative to the Group I bright stock grade by 2025, delegates heard at the European Base Oils and Lubricants summit today. ExxonMobil's Group II EHC340 max will be produced out of the company's Jurong refinery in Singapore . The new product aims to provide an improved alternative to Group I bright stock by offering "more efficient formulation costs, improved low-temperature fluidity and higher durability," said Erdem Kok, ExxonMobil's Eastern Asia and Middle East basestocks technical advisor. There is no large-scale alternative for Group I bright stock. Bright stock is mostly produced for industrial use, due to its high viscosity levels. ExxonMobil is working with several additive companies to gain the required approvals for this product before 2025. The Group II bright stock and will add to Exxon's current Group II grades, which include low- and mid-viscosity base oils. ExxonMobil will cater the Group II bright stock to European customers by delivering material to its 900,000 t/yr Group II plant in Rotterdam, the company told Argus . Argus Group I spot prices are facing downward pressure from persistently weak demand. The limited interchangeability and a structural shortage globally are tempering its drop in price. By Christian Hotten Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Saudi Luberef’s profit down on year in Jan-Sept
Saudi Luberef’s profit down on year in Jan-Sept
Singapore, 4 November (Argus) — State-controlled Saudi Aramco's base oil subsidiary Luberef posted a significant decrease in profit in January-September as a result of lower margins. Profit in January-September dropped by 38pc from the previous year to 764mn Saudi riyals ($203mn), although revenue rose by 6.5pc on the year to SR7.4bn. This is because base oil and by-products margins decreased. Luberef's base oil sales volumes in the first nine months of this year were up 1pc to 929,000t as compared with 918,000t in the same period last year. Luberef's profit in the third quarter was down by 34pc on the year to SR226mn, against a 2pc on the year drop in revenue to SR2.5bn. Argus -assessed Asian fob Group I and II base oil export prices were largely lower over the third quarter, especially for light grades, while heavy-grade prices were relatively supported because of tighter supply. The Yanbu "Growth II" expansion project is expected to be completed at the end of 2025, the company said. This will bring the base oil production capacity at the Yanbu facility to around 1.3mn t/y. Luberef is also studying a project to produce Group III/III+ base oils, which is at the pre-front end engineering design stage. By Chng Li Li Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US Group II base oil margins fall on weak demand
US Group II base oil margins fall on weak demand
Houston, 29 October (Argus) — US Group II base oil margins over feedstocks and competing fuels fell during the week ended 28 October as weak demand and increased surplus availability dropped spot prices. The Argus US domestic spot Group II N100 premium to four-week average low-sulphur vacuum gas oil (VGO) fell $1.37/USG, down from $1.39/USG the previous week. Margins also dropped below year-earlier levels of $1.45/USG. The Argus US domestic spot Group II N100 premium to four-week average US Gulf coast diesel slipped to $1.19/USG, down from $1.20/USG a week before. Margins remained above year-earlier levels of 72¢/USG. Domestic Group II mid- and high-viscosity prices declined on rising supplies and muted demand. Low-viscosity prices were steady as available re-refined grades counterbalance limited virgin Group II N100 supplies. Some market participants are hesitant to purchase surplus base oils as they try to maintain low inventory levels ahead of year-end taxes. Some of these participants are also seeing downstream customers working to draw down inventories. Four-week average feedstock VGO prices increased on limited supplies. Some of this upward pressure is being curbed by thin VGO demand because of weaker fluid catalytic cracker (FCC) margins. The low-sulphur VGO premium to four-week average WTI crude widened to $11.53/bl, up from $10.99/bl a week earlier. Weak competing fuel margins are still pushing more VGO toward base oil output. This has increased base oil supplies despite thinning seasonal demand. By Karly Lamm Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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