search.noResults

search.searching

note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
On Day 2 remarks from the two Chairs, Apu Gosalia – FUCHS PETROLUB and Brian Crighton – CRIGHTON CONSULTING set the scene for some quite heavyweight items, much appreciated by delegates. Volvo, Lubrizol, Infineum and Neste were amongst presentations made this time. One particular presentation of interest for UKLA members was made by Adrian Hill of Morris Lubricants, identifying challenges for independent blenders – very pertinent.


As usual it is not possible to give credit to all presentations, but we do congratulate ICIS on delivering an excellent 20th World Base Oils & Lubricants Conference.


Rod Pesch


Base Oil Report


European Group I base oil prices resisted the downward influence of collapsing crude oil in the opening stages of 2016, even as prices in the US and Asia dropped and Europe became the highest priced region.


Much of the resistance to pressure came from the closures of Shell and Kuwait Petroleum’s production in the Netherlands; however, the impact of this capacity rationalisation came primarily in the form of bullish sentiment rather than any tangible tightening of the supply.


Such a tightening may well come, but, initially, relatively low early-year demand and good availability of both Group I from the Baltic Sea and Group II from outside of Europe meant the market has been well supplied.


Further bolstering domestic supply has been the fact that European prices were so much higher than in other producing regions that arbitrage opportunities vanished for the exporters. In addition, the usually robust demand from developing countries that are dependent of crude oil revenues for financing, such as Nigeria, has dried up amid a severe lack of US dollars.


The result has been both a reduction in the quantity of European Group I that exported elsewhere, and an increase in Russian Group I that would normally have gone to places like Nigeria that was instead available to come to Europe.


With European price so high, material began flooding in, primarily Group I from the Baltic Sea and Group II and III from the US and Asia.


Group I truckloads began to be offered at increasingly competitive prices, which in turn drove down that price of bulk volumes. Truckload availability has been swelled by Russian material via the Baltic Sea but also material brought to northwest Europe from Southern Europe and, even, from the US.


Group III prices similarly came under pressure from sellers with ample availability aggressively trying to increase market share. Much of this availability was a result of the large price gap between Europe and Asia.


By contrast, Group II prices have held more or less stable. It appears that rising demand following the two aforementioned Group I refinery closures was balanced by an increase in imports from the US and from Asia.


Ross Yeo Senior Editor Manager (Europe) ICIS


LINK www.icis.com


LUBE MAGAZINE NO.132 APRIL 2016


69


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73