EMEA Base Oil Report Week: 02/10/18
Rising crude oil and feedstock costs continue to exert upward pressure on base oil prices, though European and Middle East Gulf sellers have so far been reluctant to impose markups, perhaps because of inventories, which are healthy for all types of base stocks, and because of lackluster demand. The start of October offered a sensible chance for prices to rise, but only a handful of producers and sellers took the opportunity – mainly for sales within Europe. Export prices are arguably more difficult to gauge on a day-to-day basis, so it may be a week before increases for those sales will become evident. Crude appears to have established new levels and shows few signs of retreating at this stage, although these latest movements are radically against all forecasts made earlier in the summer. Dated deliveries of Brent crude has risen to $83.20 per barrel now for December front month, a new four year old high, and around $2.20 higher than posted last week. West Texas Intermediate crude is also higher this week and is currently standing at $73.45 per barrel, but for November settlement. ICE LS Gas Oil has followed crude and now stands at $727 per metric ton still in respect of October front month. These prices were established from late London ICE trading on Monday, Oct. 1. read more
