ILMA Compoundings - April 2019 - 25

90

4

85

3.9

80

3.8

75

3.7

70

3.6

65

3.5

60

3.4

55

3.3

50

3.2

45

3.1

40
Mar '18

May '18

Jul '18

Sep '18

Nov '18

Jan '18

Base Oils Group I HollyFrontier Mid Cont 250 FOB USG Posted Price Outright (USD/US gal)
Crude LLS FIP St. James, LA Assessment Spot Month Closing Value (USD/bbl)
Crude WTI FIP Cushing, OK Assessment Spot Month +1 Closing Value (USD/bbl)
© 2019 ICIS

producers reduced prices at this time. However, no price
changes were taking place in Group III.
On Dec. 1, SK Lubricants moved Group III posted prices
down by 20 cents per gallon, reducing the Group III posted
prices for the first time since early 2018.
Effective Dec. 5, HollyFrontier reduced its posted prices by
15 cents per gallon on all Group I grades, with other Group
I producers decreasing posted prices with varying effective
dates. Posted reductions at this level were also announced in
early December in Group II+, and several Group III producers also decreased prices about this same time.
The year ended under ongoing downward price pressure
amid seasonally sagging demand factors and continual price
pressure from low crude oil prices.
Early January 2019 found posted price decreases announced
in Group II, as most of those producers moved prices down by
about 25 cents per gallon over the course of the month. Groups
I and III posted prices did not change in January.
More than one of the U.S. base oil producers commented
that not only the low crude oil prices were challenging to
manage, but the compression of time between the higherpriced oils (in the $70s per barrel) from early October to the
lower marks on oil prices hitting in the low $50s per barrel
made gauging prices particularly difficult.
The graph above shows the price direction of one base oil
producer's mid-viscosity base stock posted price direction
alongside West Texas Intermediate (WTI) and Louisiana
Light Sweet (LLS) crude oil price trends.

As of the middle of the first quarter, the Americas base oil
prices and the general market were somewhat steadier. Group
II domestic market assessments dropped significantly in February as the effects of the most recent rounds of posted price
reductions implemented into the wider market. Group III
remained a mix of fully certified oils and partially certified to
non-certified base stocks, all of which are in demand because
of the growing need for light/premium base oils.
IN SOUTH AMERICA
In an examination of global economies, Brazilian lubricant
market experts at Lube em Foco found three key trends likely
to affect Brazil.
The first is a slightly lower forecast for worldwide
economic growth, with the International Monetary Fund
(IMF) putting the forecast at 3.5 percent for the world
economy - 0.4 percentage points lower than the growth
expected as of April 2018. The second is growing leadership
by Asian countries. The third trend is that Latin America
and the Caribbean countries are likely to experience less
growth than Brazil. The expected growth by Latin America
and the Caribbean is at 2 percent, while Brazil is at 2.4
percent. Chile, Peru and Colombia are expected to grow by
3.5 percent to 4.0 percent.
Taylor is senior editor at ICIS. She may be reached
at 713-525-2607 or judith.taylor@icis.com.

25

USD/bbl

USD/US gal

4.1



ILMA Compoundings - April 2019

Table of Contents for the Digital Edition of ILMA Compoundings - April 2019

Letter From the President
Letter From the Ceo
Inside Ilma
What’s Coming Up
New Members
Industry Rundown
International Insight
Tackling 303 Thfs
Labeling Conundrum
Business Hub
Counsel Compound
Washington Landscape
In Network
Portrait
ILMA Compoundings - April 2019 - Cover1
ILMA Compoundings - April 2019 - Cover2
ILMA Compoundings - April 2019 - 1
ILMA Compoundings - April 2019 - 2
ILMA Compoundings - April 2019 - Letter From the President
ILMA Compoundings - April 2019 - 4
ILMA Compoundings - April 2019 - Letter From the Ceo
ILMA Compoundings - April 2019 - Inside Ilma
ILMA Compoundings - April 2019 - 7
ILMA Compoundings - April 2019 - 8
ILMA Compoundings - April 2019 - 9
ILMA Compoundings - April 2019 - 10
ILMA Compoundings - April 2019 - 11
ILMA Compoundings - April 2019 - What’s Coming Up
ILMA Compoundings - April 2019 - 13
ILMA Compoundings - April 2019 - 14
ILMA Compoundings - April 2019 - New Members
ILMA Compoundings - April 2019 - Industry Rundown
ILMA Compoundings - April 2019 - 17
ILMA Compoundings - April 2019 - 18
ILMA Compoundings - April 2019 - 19
ILMA Compoundings - April 2019 - International Insight
ILMA Compoundings - April 2019 - 21
ILMA Compoundings - April 2019 - 22
ILMA Compoundings - April 2019 - 23
ILMA Compoundings - April 2019 - 24
ILMA Compoundings - April 2019 - 25
ILMA Compoundings - April 2019 - Tackling 303 Thfs
ILMA Compoundings - April 2019 - 27
ILMA Compoundings - April 2019 - 28
ILMA Compoundings - April 2019 - 29
ILMA Compoundings - April 2019 - 30
ILMA Compoundings - April 2019 - 31
ILMA Compoundings - April 2019 - Labeling Conundrum
ILMA Compoundings - April 2019 - 33
ILMA Compoundings - April 2019 - 34
ILMA Compoundings - April 2019 - 35
ILMA Compoundings - April 2019 - 36
ILMA Compoundings - April 2019 - 37
ILMA Compoundings - April 2019 - Business Hub
ILMA Compoundings - April 2019 - 39
ILMA Compoundings - April 2019 - 40
ILMA Compoundings - April 2019 - 41
ILMA Compoundings - April 2019 - Counsel Compound
ILMA Compoundings - April 2019 - 43
ILMA Compoundings - April 2019 - Washington Landscape
ILMA Compoundings - April 2019 - 45
ILMA Compoundings - April 2019 - In Network
ILMA Compoundings - April 2019 - 47
ILMA Compoundings - April 2019 - 48
ILMA Compoundings - April 2019 - 49
ILMA Compoundings - April 2019 - 50
ILMA Compoundings - April 2019 - 51
ILMA Compoundings - April 2019 - 52
ILMA Compoundings - April 2019 - 53
ILMA Compoundings - April 2019 - 54
ILMA Compoundings - April 2019 - 55
ILMA Compoundings - April 2019 - Portrait
ILMA Compoundings - April 2019 - Cover3
ILMA Compoundings - April 2019 - Cover4
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