Base Oil Report
Crude oil prices were at an all time low in Asia early Monday with the market waiting for cues on events in the Ukraine and the outlook from the Fed later this week. On the New York Mercantile Exchange, U.S. crude oil for delivery in July traded at $101.60 a barrel, up 0.01%, after settling at at $101.58 a barrel by close of trade last week. New York-traded crude oil futures edged higher on Friday, amid indications that the U.S. economy is shaking off the effect of a weather-related slowdown over the winter. Meanwhile, heightened tensions between Russia and Ukraine remained in focus, amid concerns over a disruption to supplies from the region. The conflict between pro-Russian separatists and Ukrainian forces continued on Friday, stoking fears that the crisis will further develop and drag the U.S. deeper into the standoff. The July Brent oil contract rose 1.69% or $1.86 a barrel on the week, amid growing concerns over a disruption to supplies from Libya. The spread between the Brent and the WTI crude contracts stood at $8.17 a barrel by close of trade on Friday, compared to $7.90 in the preceding week.
The Third Base Oil & Lubes Middle East Conference 2014 was held at Intercontinental Dubai Festival City, Dubai on 16-17 April 2014 which was jointly organized by Conference Connection & Petrosil Group and Hosted by ENOC. Eminent speakers & Co Chairmen like Mr. Mohammed El Sadak( ENOC Marketing LLC, UAE), Dr Nadim Najim(Al Khaja Holding, UAE),Ms Geeta Agashe( Kline Group, USA), Dr. Henderson( K& E Petroleum Consulting, USA) Dr. Valentina Serra-Holm( Nynas AB, Sweden), Dr.Suhair Abdelhalim(Ford Motor Company, UK), Mr. Bhaskar Mukherjee(Chevron Oronite S.A,UK) and others delivered their presentation on various aspects of the base oils, additives & technology. The Conference was successful and well attended by base oil producers, exporters, importers, additive manufacturers, storage companies, OEM’s, consultants, etc.
| Month | Group I–SN 150 Iran Origin Base Oil | N-70 Korean Origin Base Oil | J-500 Singapore Origin Base Oil | Bright Stock–150 |
|---|---|---|---|---|
| January 2014 | 915–925 PMT | 1000–1005 PMT | 1035–1045 PMT | 1095–1100 PMT |
| February 2014 | 915–925 PMT | 985–990 PMT | 1020–1025 PMT | 1065–1070 PMT |
| March 2014 | 935–945 PMT | 990–995 PMT | 1030–1040 PMT | 1080–1085 PMT |
| April | 960–970 | 1025–1035 | 1060–1070 | 1130–1150 |
| Since Jan 2014, prices jumped up by USD 45 PMT (5%) in April 2014 | Since Jan 2014, prices has marked up by USD 25 PMT (2%) in April 2014 | Since Jan 2014, prices has gone up by USD 25 PMT (2%) in April 2014 | Since Jan 2014, prices has increased by USD 45 PMT (4%) in April 2014 |
The Indian domestic market Korean origin Group II plus N-60–70/150/500 prices at the current; level is steady. As per conversation with domestic importers and traders prices have inched up for N – 60/ N- 150/ N - 500 grades and at the current level are quoted in the range of Rs. 60.50 – 60.70/61.70 – 62.10/64.10 - 64.25 per liter in bulk respectively with an additional 14 percent excise duty and VAT as applicable, no Sales tax/Vat if products are offered Ex-Silvassa a tax free zone. The above mentioned prices are offered by a manufacturer who also offers the grades in the domestic market, while another importer trader is offering the grades cheaper by Rs.0.25 – 0.35 per liter on basic prices. Light Liquid Paraffin (IP) is priced at Rs. 61.60 – 62.05 per liter in bulk and Heavy Liquid paraffin (IP) is Rs. 66.05 – 66.20 per liter in bulk respectively plus taxes extra.
| Grade-wise Base Oil Import | QTY. in MT | % |
|---|---|---|
| J-150/N-100/N-150/N-250 | 75681 | 12 |
| Base Oil N-60/70/TOBS/SN-70/SN-90/HVI | 134674 | 22 |
| SN-500/AP CORE 600/SN-400 | 25858 | 4 |
| J-500/N-500/N-600 | 75571 | 12 |
| SN-100/130/150/APCORE 150/SN-180 | 25007 | 4 |
| Bright Stock- 150 | 15683 | 3 |
| Naphthenic Transformer Base | 6905 | 1 |
| Rubber Process Oil | 4850 | 1 |
| Hygold 100/500/2000/4000 |
Approximately 9381 MT of Light & Heavy White Oil has been exported in the month of March 2014 from JNPT, Mundra, Raxaul LCS, and Chennai port. Compared to last month i.e. February 2014, exports of the country have gone up by 20% in the month of March 2014. It has been exported to Argentina, Algeria, Australia, Bangladesh, Bulgaria, Brazil, Cambodia, Chile, Dominican Re, Canada, Djibouti, Ecuador, Egypt, Germany, Ghana, Hongkong, Indonesia, Ivory Coast, Israel, Italy, Jordan, Kenya, Malaysia, Mauritius, Myanmar, Nepal, Newzealand, Nigeria, Pakistan, Peru, Philippines, Poland, Russia, South Africa, Senegal, Spain, Srilanka, Sudan, Taiwan, Tanzania, Thailand. Turkey, UAE, UK, Ukraine, Vietnam, Yemen and Zaire.
Approximately 3345 MT of Transformer Oil has been exported in the month of March 2014 from JNPT and Chennai port. It has been exported to Bangladesh, Brazil, Malaysia, Iran, Newzealand, Oman, Paraguay, Morocco, Indonesia, South Africa, Srilanka, Saudi, Philippines, Thailand, Vietnam, and UAE.
