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 to 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.Continue reading
Tag Archives: base oils
You are invited to attend our presentation during the 2018 UEIL Annual Congress in Budapest
Sustainability has become an essential part of corporate growth strategies. The lubricant industry is increasingly playing a decisive role in achieving improved sustainability performance.
Sharbel’s presentation will navigate through the global bio-lubricants market and analyze opportunities existing in the key global markets, across end-use applications. Additionally, a brief description on the holistic approach the industry is taking in order to reconcile sustainability, cost, and performance, will be also provided.
LOCATION: Hilton Budapest
Budapest, Hess András tér 1-3, 1014 Hungary
Connect with Sharbel Luzuriaga, Kline’s Project Manager at the 2018 UEIL Annual Congress in Budapest to learn more about the role of lubricants in achieving improved sustainability standards.
Won’t be able to attend? REQUEST THE PRESENTATION DECK.
Kline’s Index of Base Stock Production and Re-refining Cash Margins Indicates Improved Profitability over the Past Three Months
In January 2014, Kline & Company, a worldwide consulting and research firm serving needs of organizations in the lubricants and base stocks industry, introduced its monthly Base Stock Margin Index, a characterization of recent cash margin contributions in the U.S. base oil market over the past 24 months.
The Index estimates cash margin contributions associated with U.S. Group II base stock production. It simulates EBITDA before the deduction of corporate SG&A expenses for typical VGO-based virgin base stock plants and RFO-based re-refineries.
“Since the last release of the Margin Index, Brent crude oil prices have increased by one-third,” noted Ian Moncrieff, Vice President of Kline’s Energy Practice. “Brent crude oil increased from an average of $33.70/Bbl in quarter one, to $45.52/Bbl in quarter two, and then held steady through the first two months of quarter three. While VGO feedstock price increases for conventional Group II refiners were similar to those for Brent (i.e., VGO cracks remained stable), re-refiners experienced a smaller increase in UMO feed prices from quarter one to quarter two, as used oil collector/aggregators were able to limit reductions in pay-for-oil fees required of used oil generators as heavy fuel oil prices increased.”Continue reading
Kline’s Index of Base Stock Production and Re-refining Cash Margins Indicates Worsening Conditions at the End of the First Quarter
In January 2014, Kline & Company, a worldwide consulting and research firm serving needs of organizations in the lubricants and base stocks industry, introduced its monthly Base Stock Margin Index, a characterization of recent cash margin contributions in the U.S. base oil market over the past 24 months.
The Index estimates cash margin contributions associated with U.S. Group II base stock production. It simulates EBITDA before the deduction of corporate SG&A expenses for typical VGO-based virgin base stock plants and RFO-based re-refineries. Continue reading
Is Your Base Oil Plant Healthy? Kline and SBA Consulting Launch New Base Oil Study
Kline, a global market research and management consulting firm specializing in the downstream petroleum and specialties sector, and SBA Consulting, which focuses on global analyses of the base oil market, announced a new joint initiative to analyze the financial performance and survivability for base oil plants with the launch of a client-confidential study called the Base Oil Plant Health Check.Continue reading
Kline’s Index of Base Stock Production and Re-refining Cash Margins Indicates a Downward Turn for Profitability
In January 2014, Kline, a worldwide consulting and research firm serving the needs of organizations in the lubricants and base stocks industry, introduced its monthly Base Stock Margin Index, a characterization of recent cash margin contributions in the U.S. base oil market over the past 24 months.
The Index estimates cash margin contributions associated with U.S. Group II base stock production. It simulates EBITDA before the deduction of corporate SG&A expenses for typical VGO-based virgin base stock plants and RFO-based re-refineries. Continue reading
Kline’s October Index of Base Stock Production and Re-refining Cash Margins Shows Declines Due to Lower Postings
In January 2014, Kline, a worldwide consulting and research firm serving needs of organizations in the lubricants and base stocks industry, introduced its monthly Base Stock Margin Index, a characterization of recent cash margin contributions in the U.S. base oil market over the past 24 months.
The Index estimates cash margin contributions associated with U.S. Group II base stock production. It simulates EBITDA before the deduction of corporate SG&A expenses for typical VGO-based virgin base stock plants and RFO-based re-refineries.
Continue reading
The Need for Fuel Economy and Stringent Emission Norms is Increasing Demand for Low-viscosity Grade Basestocks
In 2014, global demand for finished lubricants is estimated at 39.4 million tons, a marginal decline from 2013. Automotive lubricants account for over 50% of the total demand, with industrial products and greases accounting for the balance. Asia-Pacific is the largest lubricant-consuming region, accounting for over 40% of global demand, compared to North America, which accounts for just 22%.
Passenger car motor oils (PCMO) are defined by their quality specifications, viscosity, and, from a labeling point of view, the basestocks used to blend the product.Continue reading
Kline’s August Index of Base Stock Production and Re-refining Cash Margins Shows Improved Margins Base Oil Producers
In January 2014, Kline, a worldwide consulting and research firm serving the needs of organizations in the lubricants and base stocks industry, introduced its monthly Base Stock Margin Index, a characterization of recent cash margin contributions in the U.S. base oil market over the past 24 months.
The Index estimates cash margin contributions associated with U.S. Group II base stock production. It simulates EBITDA before the deduction of corporate SG&A expenses for typical VGO-based virgin base stock plants and RFO-based re-refineries. Continue reading
Kline’s July Index of Base Stock Production and Re-refining Cash Margins Indicates Continued Declines for Base Oil Producers
In January 2014, Kline, a worldwide consulting and research firm serving needs of organizations in the lubricants and base stocks industry, introduced its monthly Base Stock Margin Index, a characterization of recent cash margin contributions in the U.S. base oil market over the past 24 months.
The Index estimates cash margin contributions associated with U.S. Group II base stock production. It simulates EBITDA before the deduction of corporate SG&A expenses for typical VGO-based virgin base stock plants and RFO-based re-refineries. Continue reading
