Since the onset of coronavirus in early 2020, the base oil business has been thrown into disarray. While crude oil prices have increased modestly, with Brent around $55/Bbl in February 2020 and now in the low $60 range, base oil prices have mushroomed. In February 2020, European Group I export spot prices were in the low-mid $600/ton range between SN150 and brightstock. Today, solvent neutral cash market prices are double, and brightstocks almost triple, their levels of just a year ago.
The causes of such an explosion in base oil prices are not obvious and go beyond the confines of the base oil business itself. This paper is an attempt to rationalize the complexities.
ON DEMAND WEBINAR ( Episode 1)
In Conversation with a Base Oils Market Authority, Ian Moncrieff
Join us for a live session with Kline’s VP of Energy, Ian Moncrieff, who explores lubricant suppliers’ questions related to current challenges in the base oils market. Annie Jarquin, Director, at Kline’s Energy Management Consulting will select the most pressing and interesting questions asked during the webinar and, in a Q&A platform, discuss them with Ian.
