“With higher feedstock costs in February, after a full month of the lower Group II posted prices announced in January, margins on both types of refineries tightened over the past month,” said Ian Moncrieff, who manages Kline’s price forecasting activities. “The run on distillates that occurred at the end of January continued to a lesser extent in the first half of February. Though market fundamentals remain weak, and cash margins for both conventional and re-refined base oil production are low and declining, Chevron is rumored to be mulling an increase of 25-30 cents/gallon in its West Coast postings in mid-March.” Click here to see this month’s developments. In addition, last month’s margin developments can be found in the February Index.
For more information on the Kline Index, or to inquire about our pricing and margin analysis services to the base stocks industry, please contact Ian Moncrieff, Vice President (Ian.Moncrieff@klinegroup.com) at (973)-615-3680 in Kline’s Energy Practice.