Dubai, 1 August 2023
Saudi Aramco base oil company Luberef is to start publishing base oil indexes derived from spot price assessments produced by global energy and commodity price reporting agency Argus. The prices will appear on Luberef’s website to help provide transparency to base oil market dynamics for its investors.
Luberef was recently listed on Saudi Arabian stock exchange Tadawul and is a leading supplier of high-quality base oils, with production capacity of 1.3mn t/yr.
Luberef is also a member of the Saudi Aramco base oil alliance, along with Saudi Aramco affiliates Motiva and S-Oil. The alliance has a collective global capacity of more than 4.6mn t/yr of Group I, Group II and Group III base oils, making the parent company one of the largest producers of base oils in the world.
Argus base oil prices are widely used around the world in contracts to price physical base oils.
Luberef’s website will carry two base oil indexes representing the company’s typical production split. The Group I index will reflect a monthly average of Argus SN150, SN500 and bright stock fob northwest Europe export weekly spot prices. The Group II index will be based on the monthly average of Argus N150, N500 fob Asia and N70 cfr India weekly spot prices.
Argus Media chairman and chief executive Adrian Binks said: “We are pleased that Luberef has chosen to rely on Argus prices as indicators of market dynamics. We have worked with the industry to develop accurate, representative and reliable indexes that market participants increasingly trust and depend upon.”
Luberef president and chief executive Tareq Alnuaim said: “We are excited to partner with Argus to provide our investors with transparent and reliable base oil market data. By publishing base oil price indexes derived from spot price assessments made by Argus, we are providing our investors with the information they need to make informed investment decisions.”