Major Oil Suppliers Announce November Price Increases on Finished Lubricants
Recent increases in raw material costs, incited by supply shortages due to cuts from major oil-supplying nations, and compounded by geopolitical instability and increasing international conflict, are being cited for a round of price increases from suppliers. In mid-October WTI Crude was hovering around $90/barrel, appearing to be on an upward trajectory with some analysts forecasting prices to approach $100/barrel by year end.
As a result, customers can expect up to a 10-12% increase on finished lubricants in November.
“It’s crucial to acknowledge that while SCL is actively employing various tools and expertise to assist our customers in mitigating the impact of these cost increases, suppliers are also making efforts to support customers,” said SCL Vice President of Customer Solutions Dan Dziwanowski. “Despite these collaborative measures, it is unavoidable that customers will still experience some negative effects as a result. We are here to work in collaboration with our customers.”
Most suppliers are forecasting upward pressure on the market for the foreseeable future, and may limit volumes for order fulfillment. SCL Customers are advised to contact an SCL Team Member to take advantage of current pricing, and discuss operational cost saving opportunities to soften the expected impacts into 2024.
Price Increase Announcement Letters:
Chevron – Up to 12% on November 6, 2023
Chevron – Pricing Overview and Reasoning for Increase
Phillips 66 – Up to 12% on November 8, 2023
Mobil – Up to 10% on November 1, 2023
