September 12, 2006

Jobbers World Online News Briefs is a service to Subscribers to the Jobbers World Newsletter.

In this Issue of Jobbers World Online News Briefs
  • Is ExMo "Out" of PAO?
  • More price increases!
  • ConocoPhillips Lubricants Introduces Kendall SHP

  • Is ExMo "Out" of PAO?

    Although unconfirmed by ExMo, there are now many whispers on the street that say ExxonMobil Chemical will exit the merchant PAO business by the end of the year.

    The reasons for the whispers are that ExMo has reportedly been making it increasingly difficult for customers to source PAO from them since early in the year. In some cases contracts were reportedly not renewed due to what was described to customers as “tight supply.” In other cases buyers say contracts were renewed with price increases close to 20%. And when asked about ExMo’s new demeanor, some were told they might want to consider seeking alternative PAO supply. And that is exactly what some of its customers have done.

    So although it may be no more than rumor, if its customers are seeking alternative PAO (or Group III) supply, the perceptions that ExMo is existing the merchant PAO business may become a reality. And if it does, you can be sure the supply of PAO will get much tighter.

    More price increases!

    Again, it what comes as no shock to anyone in this industry, when one moves on price it seems to be only a matter of time before others do the same. Now its Petro-Canada, Citgo, and Castrol.

    Petro-Canada announced a price increase of $0.48 a gallon for its lubricants. With the exception of its ATF (which also went up $0.48 a gallon), its synthetics reportedly increased by $0.92 a gallon. Greases are said to be up $0.13 a pound. The good news is that the price of its process oils will reportedly remain unchanged.

    CITGO will reportedly increase prices on CITGO, Mystik and unbranded and private label finished lubricants. These increases will be effective after October 30, 2006. The increase will be from 6% to 10%.

    Castrol's increases include a bump of $0.56 a gallon in the price of its packaged conventional engine oils and $0.52 a gallon in bulk. It's mid- and top-tier PCEOs (high mileage, blends, and synthetics), reportedly went up $0.60 a gallon for packaged and $0.52 in bulk.

    Based on the direction the price of crude oil has been tracking over the past month and the reasons given for the most recent round of price increases (higher crude prices), it will be interesting to see if any of the majors rescind, or modify their price increases.

    ConocoPhillips Lubricants Introduces Kendall SHP

    ConocoPhillips Lubricants, announced the introduction of Kendall SHP Synthetic Transoil 50, a full synthetic manual transmission oil specifically formulated to meet the new Eaton Roadranger PS- 164 Rev 7 specification. This new Kendall Motor Oil product meets a recent demand for high-quality manual transmission oils for heavy duty trucks operating under diverse conditions, according to Reginald Dias, director, commercial lubricants, ConocoPhillips Lubricants.

    "We identified an immediate opportunity in the marketplace to offer our customers a manual transmission oil that will exceed current performance in areas such as oxidation stability, wear protection and performance in high-temperature environments," says Dias. "As the demands on equipment increase, it is important that products are made available to not only promote performance, but also offer increased protection from the elements. ConocoPhillips Lubricants is dedicated to continually offering products that meet new industry specifications while exceeding our customers' needs.”

    The new Eaton manual transmission lubricant specification, PS-164 Rev 7, replaces previous specifications while setting higher performance standards for oils used for 500,000 mile drain service in Eaton transmissions under extended warranty. An increased need for gear pitting protection, reduced wear, increased oil oxidation stability and enhanced component cleanliness forced the Original Equipment Manufacturer (OEM) to upgrade to this new specification. Eaton recommends use of this upgraded oil in its new transmissions and also in older transmissions for extended warranty coverage.

    Kendall SHP Synthetic Transoil 50 will replace Kendall Motor Oil’s heritage synthetic manual transmission oil, Kendall SHP Synthetic Manual Transmission Gear Lubricant 50. This new product will provide benefits such as increased protection against pitting and engine wear, improved thermal stability and component cleanliness, and the capability to reduce operating temperature in manual transmissions. In addition, it is fully compatible with the existing products that it will replace and may be used as make-up oil or for complete oil change in the Eaton transmissions. Due to revised technology, users will notice a color change from purple to a natural amber color in the new Kendall SHP Synthetic Transoil 50 transmission oil.


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