Shell notified U.S. customers this week that prices for its finished lubricants will generally increase by up to 5 percent effective Feb. 20. The company attributed the adjustment in part to increasing costs of raw materials used in the production and delivery of its products.
Following several rounds of base oil cuts during the second half of last year – cuts chalked up to sluggish demand and declining feedstock values – a steady climb in crude oil futures drove base oil producers to raise posted prices during December and January.
In the API Group I segment, ExxonMobil, HollyFrontier, Paulsboro and Calumet lifted their Group I oils 20 cents per gallon, with the exception of bright stock, which moved up 15 cents between Jan. 1 and 6.
In the Group II/II+/III segments, ExxonMobil, Flint Hills Resources, Calumet, Motiva, Phillips 66, SK, Kleen Performance Products and Avista Oil lifted their prices between 5 cents and 20 cents per gallon, depending on the grade, with implementation dates ranging from Dec. 19 to Jan. 18.
On the naphthenic front, Ergon, Cross oil, Calumet, and San Joaquin Refining all raised prices by 20 cents per gallon across the board between Jan. 3 and Jan. 13.
Gabriela Wheeler contributed to this report.