Singapore producer cuts some base oil prices

A Singapore base oil producer is cutting some of its ex-tank Singapore prices for the first time in more than a year.

The producer is cutting its ex-tank Singapore price for Group I SN 500 by $30/t and its Group II N150 price by $30/t. The new prices will take effect from 3 August.

The producer is keeping unchanged its Group I SN 150, bright stock and Group II N500 prices.

Its most recent price adjustment had been in May, when it raised prices for all its heavy-grade base oils.

Its most recent price cut had been in May 2020.

Following the price cut, the producer's Group I bright stock premium to SN 500 will rise to $325/t, the widest since April 2016. Its Group II N150 premium to Group I SN 150 will fall to $55/t, the narrowest since September last year. The premium of its Group II N500 to N150 will rise to $365/t, the widest level in more than a decade.

Regional spot prices in Asia-Pacific have begun to face more pressure in recent weeks as supply availability has increased and demand has slowed.

By Jane Liu