Global Lubricant Basestocks: Market Analysis and Opportunities

Kline’s June Index of Base Stock Production and Re-refining Cash Margins Indicates Decreased Margins for Base Oil Producers

In January 2014, Kline & Company, 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

Global Lubricant Basestocks: Market Analysis and Opportunities

Kline’s April Index of Base Stock Production and Re-refining Cash Margins Reflects Relatively Profitable Conditions for Refiners

In January 2014, Kline & Company, 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