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Price Rising! Influencing Factors Of Lubricant Oil Price
Jul 24, 2017

Price rising! influencing factors of lubricant oil price


At the beginning of 2017, the major brands of lubricants began to line up prices!

Philips66 price increases 5%, February 27 to implement the new price;

US Citgo brand prices rose 3% - 5%, March 1 implementation of the new price;

Exxon Mobil prices rose 5%, February 22 to implement the new price;

Chevron prices 5%, March 6 to implement the new price;

Omni price increases 5% - 8%, February 22 to implement new prices;

US Cam2 brand prices 5% - 8%, February 22 to implement the new price;

Shell prices 5%, February 20 to implement the new price.

What are the factors that affect oil prices?

First, the base oil, additives and other raw material prices

It is commonly said that the lubricating oil is a mixture of chemical composition of crude oil, crude oil is the basic formula for lubricating oil, adding chemical products is the key to determine the level of lubricants. As crude oil affected by various factors, the price changes are very frequent, an average of one month up and down two or three times.

(1) Crude oil prices are affected by two factors

First, the ups and downs of oil prices in the international market is the biggest factor affecting the price of crude oil. Due to the uneven distribution of oil resources and the seasonal and differential nature of oil demand in the international market, the oil will flow globally, so the price of crude oil will be affected by local political and economic factors.

Second, China's automobile and other lubricants in recent years, the rapid development of demand industry, as well as long-term import and export trade in the dominant position, to the crude oil and finished oil market supply and demand imbalance situation, the domestic demand for lubricants larger.

(2) additive price impact

Crude oil in the processing of finished oil into the process, the need to add additives, additives as an important distinction between the level of lubricants formula, can give lubricants better performance. But by a variety of factors to increase the processing costs of lubricants, the same impact on the price of lubricants.

Since the third quarter of 2016, due to exchange factors, the import price of additives raw materials. At the same time affected by policy factors, most of the factory limited production or shutdown, the market supply decline, rising costs.

Second, the price of lubricating oil packaging materials soaring

The market common lubricants for the drum and plastic drum packaging, plastic drums small package prices rose 15%, barrels of barrels prices rose 20%, the cost of production rose to become the main reason for price increases.

Third, the logistics and transportation costs rise.


Fourth, demand increases

The more consumers, the more demand, the price will be affected by this. According to the US Energy Information Administration, China is expected to consume more than 3 million barrels a year in 2012, accounting for about a quarter of the increase in global demand during the year.

Fifth, speculation and policy costs.In the case of rising oil prices, although the current does not rule out the pressure brought about by rising raw materials, but the oil production giants release price message behavior does not rule out speculation suspects. In addition, in order to environmental development needs, in addition to strict control of the factory sewage, the country in recent years to intensify efforts to control the air pollution index, gasoline and diesel oil and other refined oil consumption tax. The annual increase in consumption tax for oil manufacturers is very large impact.

Base oil, taxes, transportation costs, packaging costs and other prices continue to rise, is bound to eliminate a number of low prices can not cope with the small manufacturers, and now a substantial increase in prices to a certain extent, narrow the gap between domestic brands and international brands: International brands must sacrifice part of the profits to maintain high prices at the same time, it still does not affect the development of its market, if the international brand blindly increase the price, consumers will be reduced.