ILMA Compoundings August 2018 - 16
INDUSTRY RUNDOWN
Market Report
First Half of 2018 Has Big Impact
Higher base oil prices, marine changes, pressured transportation sector affect
several industries
By Judith Taylor
U.S. base oil posted prices rose in the second quarter
of 2018 for Group I, Group II, Group II+ and Group III.
Chevron came in with a 20-cents-per-gallon increase on
its Group II posted prices, effective April 25. The previous
posted-price increase by Chevron on its Group II grades
occurred Jan. 31 as the first quarter of 2018 saw price
increases of 15-22 cents per gallon enter the market. The
second quarter posted-price increases ranged from 12
to 20 cents per gallon, adding to the 15-22 cents in the
first quarter to raise posted prices about 40 cents per
gallon across the first half of the year, depending upon
producer and viscosity grade.
4.25
4
3.5
CHANGES HEADED FOR THE MARINE FUEL SECTOR
With new marine fuel sulfur regulations about 18 months
away, U.S. refiners are gearing up for the shift in vessel fuel
supply. By Jan. 1, 2020, all marine traffic must use fuel with
0.5 percent or less sulfur content as part of new International
Maritime Organization (IMO) standards. That change
will spur demand for distillates, such as ultra-low sulfur
diesel (ULSD) fuel, and U.S. refiners are
well-positioned to capture a firm share of the
approximately 3 million barrels per day global
marine fuel market, according to observers.
90
"Because of regulations that have been
85
made [here in the U.S.], these new IMO
regulations already set up [domestic refiners]
80
well," said John Auers, vice president at consultant group Turner Mason & Co. Auers said
75
distillates, including low-sulfur vacuum gasoil
(LSVGO), can be the chief replacements.
70
"LSVGO will be just as useful as [a]
replacement as distillate, but it can also be
65
burned by ships," Auers said. While the
60
amount of distillate supplied will likely be
reduced over time, the value of all low-sulfur
55
fuels will go up, he added.
USD/bbl
USD/US gal
3.75
The graph below shows one Group II viscosity grade posted
price and a Group I posted price alongside Louisiana Light
Sweet (LLS) crude oil price trends and the heating oil price
trend. The graph also demonstrates the effect of the upstream
factors in underpinning the base oil increases.
3.25
3
2.75
2.5
Nov 17
Dec 17
16
Jan 18
AUGUST 2018
Feb 18
Mar 18
| COMPOUNDINGS | ILMA.ORG
Apr 18
May 18
ILMA Compoundings August 2018
Table of Contents for the Digital Edition of ILMA Compoundings August 2018
LETTER FROM THE PRESIDENT
LETTER FROM THE CEO
INSIDE ILMA
WHAT’S COMING UP
INDUSTRY RUNDOWN
IN GOOD HEALTH
STAYING SAFE
BUSINESS HUB
WASHINGTON LANDSCAPE
IN NETWORK
ILMA Compoundings August 2018 - Cover1
ILMA Compoundings August 2018 - Cover2
ILMA Compoundings August 2018 - 1
ILMA Compoundings August 2018 - 2
ILMA Compoundings August 2018 - LETTER FROM THE PRESIDENT
ILMA Compoundings August 2018 - 4
ILMA Compoundings August 2018 - LETTER FROM THE CEO
ILMA Compoundings August 2018 - INSIDE ILMA
ILMA Compoundings August 2018 - 7
ILMA Compoundings August 2018 - 8
ILMA Compoundings August 2018 - 9
ILMA Compoundings August 2018 - 10
ILMA Compoundings August 2018 - WHAT’S COMING UP
ILMA Compoundings August 2018 - INDUSTRY RUNDOWN
ILMA Compoundings August 2018 - 13
ILMA Compoundings August 2018 - 14
ILMA Compoundings August 2018 - 15
ILMA Compoundings August 2018 - 16
ILMA Compoundings August 2018 - 17
ILMA Compoundings August 2018 - IN GOOD HEALTH
ILMA Compoundings August 2018 - 19
ILMA Compoundings August 2018 - 20
ILMA Compoundings August 2018 - 21
ILMA Compoundings August 2018 - 22
ILMA Compoundings August 2018 - 23
ILMA Compoundings August 2018 - 24
ILMA Compoundings August 2018 - 25
ILMA Compoundings August 2018 - STAYING SAFE
ILMA Compoundings August 2018 - 27
ILMA Compoundings August 2018 - 28
ILMA Compoundings August 2018 - 29
ILMA Compoundings August 2018 - BUSINESS HUB
ILMA Compoundings August 2018 - 31
ILMA Compoundings August 2018 - 32
ILMA Compoundings August 2018 - 33
ILMA Compoundings August 2018 - WASHINGTON LANDSCAPE
ILMA Compoundings August 2018 - 35
ILMA Compoundings August 2018 - IN NETWORK
ILMA Compoundings August 2018 - 37
ILMA Compoundings August 2018 - 38
ILMA Compoundings August 2018 - 39
ILMA Compoundings August 2018 - 40
ILMA Compoundings August 2018 - Cover3
ILMA Compoundings August 2018 - Cover4
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