Jobbers World News
April 1, 2009

  • ConocoPhillips Drops Prices
  • Marketers told GM will decrease prices on Goodwrench Oil
  • Chevron and ExMo Also Drop Prices
  • Safety-Kleen Introduces Recycled Motor Oil to "Green-Minded" Consumers
  • Fuchs Petrolub Q1 net tops expectations, Outlook Dim
  • ROUSH Named "Official Motor Oil" of Hooked on Driving
  • Contact Us With Your News

  • ConocoPhillips Drops Prices

    ConocoPhillips advised its marketers yesterday that it will decrease posted prices for most lubricant products $0.40 per gallon, or $0.05 a pound based on product specific factors.

    In addition to lower lubricant prices, ConocoPhillips announced a decrease of $0.25/gal for its concentrated antifreeze, or $0.12/gal (50/50).

    ConocoPhillips price decreases reportedly apply to 76 Lubricants, Conoco, and Kendall brand lubricants and antifreeze.

    Marketers told GM will decrease prices on Goodwrench Oil

    Marketers got word last week that General Motors will decrease prices on Goodwrench Oil and bulk ATF by $0.50 a gallon effective May 1, 2009.

    Marketers say this represents the third price reduction for Goodwrench Oil and bulk ATF in the last three months. When taken together, they say these decreases represent a drop of $1.40 a gallon since the beginning of the year.

    Chevron and ExMo Also Drop Prices

    Late last week, Chevron advised it marketers that it will decrease the price of most of its lubricating oils by 4 to 6% effective May 22. Marketers say Chevron will also extend a price adjustment in the same amount through manual adjustments from May 1 to May 22.

    ExxonMobil announced on May 1 that effective May 8, 2009, it will decrease prices on its lubricants and greases by up to 6%.

    Safety-Kleen Introduces Recycled Motor Oil to "Green-Minded" Consumers

    According to Safety-Kleen, "Green-minded" consumers now have an additional way to help the environment by buying recycled motor oil from Safety-Kleen. For the past 20 years, Safety-Kleen has produced high quality motor oils for large commercial fleets and the federal government by re-refining used oil the company collects at thousands of car dealerships, automotive retailers and quick lube facilities across North America.

    Now, Safety-Kleen is making its re-refined oil available to consumers under the brand name EcoPower®. The company is targeting retailers and distributors in the top 100 U.S. markets to offer the new product, including AutoZone.

    "Our research shows that consumers are ready for a new category of motor oil - recycled motor oil - with EcoPower," said Fred Florjancic, president and CEO of Safety-Kleen. "It's one of the most exciting introductions in the motor oil category in more than a decade. There is definitive market demand in today's market for motor oil that delivers superior value in performance and protection in a more environmentally friendly way."

    In 2008, Safety-Kleen collected more than 225 million gallons of used oil and recycled approximately 140 million of it into base oil products for re-use in the marketplace. Safety-Kleen's re-refined oil meets or exceeds all applicable specifications set by the American Petroleum Institute (API) and the Society of Automotive Engineers, and is currently used by many large organizations, including the U.S. military, numerous state governments and automotive fleets.

    The process for re-refining used oil is virtually the same as refining crude oil. Both go through the same exacting processes of distillation and hydro treating. The end product is identical to traditional motor oils made from crude and must meet the same specifications.

    "Expanding our current relationships with leading retailers, fleets, oil change service shops, and distributors helps us take this premium quality product directly to consumers who are now demanding more green alternatives," said Florjancic. "We are projecting significant demand for the EcoPower products in the coming months."

    Florjancic says recycling used motor oil not only conserves a valuable natural resource, but also protects surface waters and groundwater supplies against potential contamination from improperly disposed used oil. According to the U.S. Environmental Protection Agency, recovering the motor oil from one oil change of a typical automobile protects a million gallons of drinking water - a year's supply for 5,479 people.

    Re-refining also saves energy. It takes up to 85 percent less energy to produce a gallon of re-refined oil from used oil than to produce that same oil from a gallon of crude.

    "The end result of Safety-Kleen's re-refining used oil is that it avoids the emission of more than 300,000 metric tons of greenhouse gases each year when compared to refining from crude and burning used oil for energy," said Florjancic. "That is equivalent to taking more than 200,000 cars off the road each and every year."

    EcoPower motor oil is now available in 5W-20, 5W-30, 10W-30 and 15W-40 viscosity grades. In addition, all major U.S. car manufacturers have approved the use of Safety-Kleen SAE 5W-20, 5W-30 and 10W-30 ILSAC-certified motor oil in all their cars. The EcoPower SAE 15W-40 grade has also been approved by leading heavy-duty engine manufacturers.

    "We're committed to making EcoPower available through retailers for motorists that change their own oil and through oil change outlets for motorists who have their oil changed professionally," said Florjancic. "We intend to reach consumers with the best environmentally friendly motor oil on the market today."

    Fuchs Petrolub Q1 net tops expectations, Outlook Dim

    German lubricant maker Fuchs Petrolub posted better-than-expected first-quarter earnings even as sales fell short of expectations and the company gave a pessimistic outlook for the overall lubricants market. "There are currently no indications that a significant improvement in the economic situation and therefore in the demand for lubricants is to take place," the company said in a statement on Tuesday.

    Fuchs Petrolub posted first-quarter earnings before interest and tax (EBIT) of 26.5 million euros ($35.08 million), while net profit came in at 16.2 million euros.

    Analysts had on average expected first-quarter EBIT to come in at 24 million euros, while net profit was seen at 14 million, according to the consensus in a Reuters poll of analysts.

    With 279 million euros, sales were below the 284 million forecast.

    Fuchs Petrolub did not provide an outlook for 2009, only saying that the "extent to which the economic development will allow the coming quarters to see similar or even higher earnings before interest and tax than the first quarter of 2009 remains to be seen".

    The company -- which competes with Quaker Chemical Corp as well as units of oil companies such as Royal Dutch Shell and Russia's LUKOIL -- in March said it expected sales and net profit to decline in 2009.

    ROUSH Named "Official Motor Oil" of Hooked on Driving

    Hooked on Driving is one of the premier high-performance driving schools in the country and has had a long relationship with ROUSH® Performance as they promote car control over racing. This association took another step as ROUSH® Motor Oil was named the "Official Oil of Hooked on Driving."

    Inspired by the racetrack and formulated for the road, ROUSH® Motor Oil provides protection for both newer and older performance engines. "The technicians at Valvoline have helped me to create ROUSH® Motor Oil, which I believe is the most advanced lubricant on the market today, and will become the motor oil of choice for those who claim that 'good' isn't good enough for their car," said Jack Roush.

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