US GROUP I SN 150 & GROUP II N100 PRICES ($/USG) VS CRUDE OIL ($/bl) $3.25 $85 $3.05 $75 $2.85 $2.65 $65 $2.45 $55 $2.05 $/bl $/USG $2.25 $1.85 $45 $1.65 $1.45 $1.25 $1.05 WTI crude ExxonMobile SN 150 posting Argus dom spot US GI SN 150 Motiva N100 posting Argus dom spot US GII N100 $0.85 Jan '16 Mar '16 May '16 Jul '16 Sep '16 Nov '16 Jan '17 Mar '17 May '17 Jul '17 $35 $25 Sep '17 Nov '17 Jan '18 February. Most of these supplies were sold to trading firms in December and January. This large volume follows the shipment of more than 100,000 tons of mostly Group II supplies to this region in December and January. A major U.S. Gulf Coast producer did not have any spot Group II supplies available in February. The producer had sold in December and early January most of its spot supplies through February. Some of the other major Group II producers will have spot cargo volumes available for export in March. Group I prices also firmed ahead of planned maintenance at a major refinery starting in mid-February. The maintenance involves the refinery's sole crude unit. It is expected to last between six and seven weeks. The producer had limited surplus supplies available on a spot basis in the months before the maintenance began. Only one major producer had cargo volumes of its heavy neutrals and bright stock available for export in December through February. These supplies were swiftly cleared in the export market. All Group I producers raised their solvent neutrals prices by 15 cents per gallon in January. But bright stock posted prices remain unchanged. Weaker demand for the Group I heavy-grade and access to lower-priced alternative products kept pressure on bright stock prices. MAINTENANCE CURBS GROUP III SUPPLIES Group III prices also rose in early February to their highest levels since May 2017 amid a heavy round of refinery maintenance. All U.S. Group III suppliers raised their prices between 10 and 24 cents per gallon in late January and early February. Supplies of fully and semi-approved Group III base oils are balanced. A round of Group III refinery maintenance in Asia-Pacific and the Mideast Gulf in the first few months of the year has curbed the availability of fully approved supplies. Some suppliers have sufficient volumes in storage tanks in the U.S. to cover their commitments in the Americas during the maintenance period, but additional supplies of fully approved Group III remain limited. Some unapproved Group III supplies of U.S. and Russian origin have remained available on a spot basis, but prices for these supplies also increased in January. More unapproved Group III supplies from a Mideast Gulf refinery began to arrive in the U.S. in late February. This facility produces fully and unapproved Group III base oils. Regular shipments of unapproved Group III supplies from this refinery will continue to move to the Americas this year. Molina is the editor of Argus Americas Base Oils. She can be reached at 713-360-7560 or eva.molina@argusmedia.com. 19