Heavy duty motor oil (HDMO) demand is projected to grow steadily over the next few years as the commercial vehicle market continues to expand. Factors such as technological development accelerated by (or associated with) the online retail boom as well as the implementation of strict air-quality regulations is promoting the use of electric vehicles (EVs) in the commercial vehicle (CV) segment. Large metropolitan areas around the world are increasingly incorporating EVs into their bus fleets. However, unlike in the passenger vehicle segment, Kline foresees more modest penetration of EVs in the CV population for a variety of reasons.Continue reading
Due to the profound changes sweeping the global base oil market Kline & Company announced today the publication of the monthly Kline Base Stock Margin Index. The index simulates cash margins of typical U.S. base oil producers over the past two years.
The index estimates typical cash margin contributions associated with U.S. Group II base stock production, from both VGO-based virgin base stock plants and Recovered Fuel Oil (RFO)-based re-refineries, simulating EBITDA before the deduction of corporate SG&A expenses. A rolling 24-month index will be published monthly, and is available to Kline’s clients, as well as to petroleum and lubricants industry media. The index will be updated monthly and released to our clients and media contacts.Continue reading