JobbersWorld Reaches Out to Over 10,000 Professionals in the Lubricants Business

The American Refining Group (ARG) announced it will increase prices for motor oil, ATF, gear oils, and other industrial lubricants by up to 9%. This increase is effective June 3, 2011. All private label, unbranded and house brands will be affected by the change.

JobbersWorld note: Whereas this may not apply to the ARG announcement, some marketers are reporting the limitations on what they can purchase following the most recent round of price increases are more restrictive than they have been in the past.

The spread between the price of crude oil and base oil continues to widen. As of the close of trading yesterday, the spread reached $2.04 a gallon. This is up from $1.59 a gallon, or 28% since the start of the year.  

Whereas the spread between crude and base oil has widened over the past few months, it's clear this is not an anomaly. Instead, data indicates this is a trend.

In fact, discounting the volatility of crude and base oil pricing seen at the end of 2008 and into 2009, a forecast made in 2008 based on a linear regression of spreads from 2004 to 2008 would put the spread on a trajectory to reach an average of close to $2.05 a gallon in 2011. The spread is currently at $2.04.

The primary reason for the resilience in the price of base oil is tight supply. In fact, in the views of many independent lubricant manufacturers, supply is currently so tight that "we are one hiccup away from a serious shortfall in base oil." Further, some fear such a hiccup could occur as a result of the floodwaters making their way down the Mississippi to the Gulf Coast.  

Bracing for the Flood        

As most are painfully aware, the Mississippi River is producing record flooding through parts of Tennessee, Mississippi and Louisiana. Further, historic flood levels are anticipated as the crest continues to move south towards New Orleans.

Whereas flooding could impact base oil and lubricant additive plants located in Belle Chasse and Oak Point, Westlake, Baton Rouge, Princeton and Shreveport Louisiana, as well as Natchez, and Vicksburg Mississippi, the probability of this occurring was reduced with the US Army Corp of Engineers decision today to open the Morganza Spillway as early as Saturday.  Opening the spillway is expected to redirect the flooding away from New Orleans and relieve the threat to many of these key areas in the lubricants supply chain.

Click for Larger Map

Assuming the Morganza Spillway is opened, the U.S. Army Corps of Engineers released a map of "Estimated Inundation" projecting flooding in the parishes along the Mississippi River. The Inundation Map depicts the anticipated impacts from the opening.

Even with the opening of the Morganza Spillway, however, operating capacities of some of the plants along the Mississippi are expected to be compromised as floodwaters make their way to the Gulf. In addition to the direct impact of flooding, supply chain disruptions are also expected due to power outages, river and rail transportation challenges, and other secondary consequences of flooding. Flooding has already stopped barge traffic on the Ohio River and north of Memphis on the Mississippi last week. In addition, it has now interrupting shipping south of the Memphis.  As an example of how this can impact the refinery business, the 104,532-ton oil tanker Zaliv Baikal was prevented from delivering crude to ExxonMobil's Baton Rouge refinery due to concerns about the ship having enough clearance to get under the Interstate 10 Bridge over the Mississippi River.

Whereas the supply of base oil has been tight for most of this year, it may get tighter. In addition, JobbersWorld is already hearing that some blenders and marketers are already feeling the impact of flooding on base oil prices. Whereas many buy on spot, they are now finding the price is posted-plus.  

Posted May 10, 2011 

The McPherson Companies

The McPherson Companies, Inc. (TMC), founded in 1971, is family owned business with operations in 5 southeastern states and over 250 employees. TMC is one of the largest Exxon-Mobile and BP Castrol distributors in the country and this year we are celebrating 40 years of proudly serving our customers.

We are seeking candidates to fill current open positions on our Sales Team:  Regional Vice President of Sales Georgia/Tennessee; TPM Sales Representatives - North Alabama, Georgia, and the Gulf Coast.  

For information and details, visit our website at mcphersonoil.com > Careers.   

Posted April 21, 2011

Sales representative in the Ocala, FL area

A national distributor is looking for a sales representative in the Ocala, FL area.  To join our growing team we are looking for candidates with prior experience selling industrial products.  If interested please send a resume to oilandgreasesales@gmail.com.

Posted April 11, 2011

Multiple openings for C-level sales executive national account sales division

Please forward resumes for consideration to:   lubricantsales@hotmail.com