The end of May brought an unexpected spike in oil prices which brought a mixed response from the industry and commentators. After recent stability, the price of crude rose above $65 a barrel, its highest for more than six months.
 Image: Isado |
According to the Washington Post, opinions varied as to the reason for the spike, with theories ranging from signs of an uplift in the world economy to more drivers on the roads in the US; although Exxon Mobil's Rex Tillerson was reported as telling shareholders that there was little apparent justification for the upswing. Meanwhile, US Energy Secretary, Steven Chu, warned that further price rises would slow economic recovery. |
However, the upswing did not arrive soon enough to prevent a slide in finished lube prices with Lube Report's George Gill noting the continued tension in prices between the major producers and the smaller independents. BP, Chevron, ExxonMobil and ConocoPhillips were all cited as having alerted their customers to price reductions.
In Nigeria concern was focused on the importing of substandard base oil and lubricants by "unscrupulous sellers". Nigeria's Minister of Petroleum Resources, Alhaji Rilwanu Lukman, called for a range of measures, including stopping the issue of Catergory ‘E' licenses to importers of base oil without blending plants, in an effort to tackle the problem.
Elsewhere there were new and potential sources of production, with Iraq's Kurdish region bringing crude to the international market from its Taq Taq and Tawke oil fields; and Exxon, Aramco and Sinopec's joint refinery in Fujian, South East China, starting trial runs ahead of full production later in the year.