Posted by Logan in SE Texas on April 24, 2017 at 18:55:44 from (104.129.204.91):
In Reply to: $10/at oil posted by Geo-TH,In on April 24, 2017 at 16:05:48:
From what I know from running a base lube oil unit for 12 years the less volume that is in the market place drives the price up. Yes, I know that is 100% opposite from how economics work. The catch is that there are only a few refineries that make the base oil that gets an additive package to make the finished product. That allows the marketing dept. to pretty much set the price for the base oil. Now to really make your blood boil, not on purpose mind you, the stream that goes into that particular product is a by-product of my process, it just "happens" when we make the heavier stream that is used for motor oil blending. The profit margin is usually twice what the heavy stream is, but at a lot less volume. If there is no buyers for the light stream we can either stop making it all together or send it into the diesel system. I have to pay retail too, please don't shoot the messenger...
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