The Shell GTL production in Qatar has been down, which helped relieve a multi-year glut of Group III base oils that depressed prices. The operation will now resume and prices are beginning to rise.
From Lube Report:
"Industry sources have said that the loss of Pearl’s output was a significant factor, along with scheduled temporary maintenance shutdowns at other plants, in this year’s tightening of the Group III market. For much of the past few years, that segment had a large surplus that depressed prices. Prices rose in recent weeks as the surplus evaporated, but some say the surplus could return as Pearl’s base oil plant ramps up.
Shell has used most if not all of the Group III output to make its own finished lubricants. Without that supply, observers say the company tapped sources that had supplied other blenders."
Lube Report
Tom NJ/VA
From Lube Report:
"Industry sources have said that the loss of Pearl’s output was a significant factor, along with scheduled temporary maintenance shutdowns at other plants, in this year’s tightening of the Group III market. For much of the past few years, that segment had a large surplus that depressed prices. Prices rose in recent weeks as the surplus evaporated, but some say the surplus could return as Pearl’s base oil plant ramps up.
Shell has used most if not all of the Group III output to make its own finished lubricants. Without that supply, observers say the company tapped sources that had supplied other blenders."
Lube Report
Tom NJ/VA
