ExxonMobil shut its Singapore refinery-based 1.2-mil-mt/yr Group II base oil unit on May 7-8 because of a unit glitch, revealed a market source.
The glitch is minor, so the refinery will resume normal operation soon, a buyer of ExxonMobil's base oils estimated. Another insider estimated that the turnaround will last for 5-7 days. Furthermore, some Asian buyers have been notified that the company will delay its May and June shipping schedules by one week or will cut supplies by 30%, he furthered. But company sources declined to comment on these estimations.
Three more northeast Asia-based Group II base oil refineries will head into maintenance during May-July. Asian Group II base oil supplies thus will maintain short, an industry source said. Supplies in China will be no exception, he added.
Group II base oil supplies thus may keep firm in China in the near term, he said.
ExxonMobil has two base oil refineries in Singapore, with one yielding Group I grades and one Group II grades.
