More Third Round Price Increases

More Third Round Price Increases

Sinclair Lubricants was the first to move with a third round of price increases for 2018 when it announced on May 8th it will be implementing a price increase of up to 10% to 12% on finished lubricant products effective July 1, 2018. Click for details.

Now there are two more with a third round of price increases.

Advanced Lubrication Specialties (ALS) announced today it will be implementing a price increase on most finished lubricants between 4 and 6%. The increase goes into effect on June 4, 2018. ALS attributes the price change to the continued increases in the base oil market.

Sunoco Lubricants announced today that effective June 4, 2018 it will be implementing a price increase on most finished lubricants between 4 and 6%. Sunoco also attributes the price change to the continued increases in the base oil market.

Watching the Spread

The price spread between crude oil (WTI) and base oil (100N Group II) averaged $1.30 a gallon from January 1, 2017 to May 15, 2018. What this means is that if crude was trading at $x/gal, on average, base oil would sell for “x” plus $1.30/gal during that period. Generally, for base oil producers, the greater the spread the better the day. This is because when the spread is high, base oil producers enjoy higher margins. When it’s low, not only do they see lower margins, they feel pressure from their upstream refining businesses to increase the price of base oil or run the risk of alternative value economics favoring the use of base oil feed to produce fuels rather than base oils.

Base oil spreads are important to watch. The spreads provide lubricant blenders and marketers with a predictive tool to forecast movements in base oil and finished lubricant prices. In some respects, spreads can be looked at as an early alarm. Because when the spread drops below a certain threshold, we typically see base oil prices increase, which in turn, result in price increases on finished lubricants.

There have been two periods with notable increases in the crude and base oil spread in 2018, as shown below. These were accompanied by a number of base oil price increase announcements and, not surprisingly, they were followed by announced increases in the price of finished lubricants.

CrudePic5162018

Gen III Oil Corp. Announces Initial Analyst Coverage Report by Canaccord Genuity Corp.

Gen III Oil Corporation announced that Canaccord Genuity Corp. “Canaccord” – a Vancouver, Canada headquartered investment dealer, has published an initial equity analyst research report on the Company.

The research report dated May 10, 2018, entitled “Gen III Oil Corporation. – Initiation of Coverage: An industry-disrupting oil change.” was written and produced by Associate Analyst, Kimberly Hedlin, CPA, CMA, as an independent analysis of Gen III’s activities and progress. Click for More

On the Wire and In the News

Highline Aftermarket, a Portfolio Company of The Sterling Group, Acquires South/Win

Webinar | Make Every Drop Count – Global Best Practices in Used Motor Oil Stewardship

Forte Oil : Chevron Partner on Texaco Branded Lubricants

Price Increases: Round 3

Price Increases: Round 3

uppricesChemlube announced today it will increase the price of its Savannah lubricants by $0.20 to $0.25 a gallon. These increases go into effect on November 20, 2017. Chemlube attributes the increase to the higher price of raw materials.

Advanced Lubrication Specialties (ALS) announced today that it will increase the price of its lubricants from 6 to 10%, effective November 13, 2017.

CAM2 announced today, a bulk and package price increase of 4 to 9% per gallon (depending on product). The increase is effective November 15, 2017. CAM2 says the increase is necessary due to the continuing increase in base oil prices.

Smitty’s Supply announced today a price increase of $0.20 a gallon for bulk, $0.25 a gallon for packaged lubricants, and $0.03 a pound for packaged greases. This increase is effective November 15, 2017.

Warren Oil announced on October 24, 2017 that it will increase the price of its finished lubricants and greases by 4 to 9%. The increase will be effective as of November 17, 2017 on orders placed on or after Monday, November 20, 2017. Warren attributes the price adjustment to the increased costs of base oils, additives, packaging and transportation.

ExxonMobil announced on October 20, 2017 that it will increase the price of its lubricants by up to 6% effective November 20, 2017. This increase is said to impact both branded and unbranded lubricants, including greases.

The first it what is now taking shape to be Round 3 in lubricant price increases for 2017 was announced by Kleen Performance Products on September 6, 2017. 

Champion Focuses on Mopar with 0W-40 Modern Muscle Motor Oil

4402H Modern Muscle 0W-40 ImageChampion Brands, LLC, a major player in development and manufacturing of racing and performance products, announced this week the unveiling of a new SAE 0W-40 premium full-synthetic motor oil specifically formulated to maximize the demands of today’s high performance street vehicles.

Champion Modern Muscle (CMM) SAE 0W-40 Motor Oil is an API SN licensed viscosity recommended for Dodge Viper 8.4L, Dodge Challenger 6.4L, Dodge Charger 6.4L, Additional Modern Dodge Hemi Motors, Jeep 6.4L, Nissan GTR 3.8L, and others, plus OEM / Engine Builder “Crate Motors” requiring a high performance 0W-40 viscosity.

CMM Motor Oils will provide outstanding levels of fuel economy performance, cleaning power and engine protection, even during extended oil change intervals. These high-performance oils are proven to significantly reduce wear and viscosity breakdown due to advancements in additive engineering.

CMM Motor Oils utilize Champion’s “Blue E.T.®” (Enhanced Technology) racing additive, and Champion’s TVS® (Thermal Viscosity Stabilizer) performance additive. These proprietary technologies deliver unmatched film strength at high temperature, better piston ring seal for maximum compression, and increase horsepower and torque in most engines.

These premium mixtures of synthetic base fluids and additives provide maximum durability and protection from wear and viscosity breakdown by including special lubricity modifiers, and premium anti-wear additives This unique robust formulation enables CMM Motor Oils to outperform all leading high performance synthetic oils.

About Champion Brands, LLC
Champion Brands, LLC, is a globally recognized industry leader in specialty lubricants for over 60 years. Champion also produces and blends over 350 products including fuel, oil, engine additives, and lubricants for the racing, automotive, heavy truck, agricultural, industrial, and specialty markets. For more information call Champion at 660-890-6231. Champion Brands, LLC; 1001 Golden Drive, Clinton, MO, or go to http://www.championbrands.com

Source: Champion Brands, LLC

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