Argus Launches European Group 3 Base Oil Price Assessments

News provided by

May 26, 2010, 03:09 ET

SINGAPORE, May 26 /PRNewswire/ -- International energy pricing agency Argus launched assessments for European Group 3 base oil prices on 21 May. These are the first price assessments in the world for spot Group 3 base oils -- the key ingredient for high-end engine lubricants.

Surging motor fuel prices in recent years and concern about the environmental and health impact of vehicle emissions have led to increasingly stringent fuel efficiency and vehicle emissions standards throughout the world.

At the same time, the slump in vehicle sales in the developed world economies and the increasingly globalised nature of the largest vehicle makers has speeded up moves to streamline production standards and minimise costs.

European motor fuel specifications are already among the tightest in the world. China and India introduced tighter motor fuel requirements this year that cut the maximum permitted sulphur content in fuel. The US is to introduce new GF-5 engine oil specifications from October this year, to improve vehicle fuel efficiency and engine cleanliness. Other countries such as Japan and Canada are expected to adopt the same rules as the US.

Production of these higher-quality engine lubricating oils requires the use of high-end lubricant feedstock such as Group 2 and Group 3 base oils with specifications that include lower viscosity, a higher viscosity index and almost zero sulphur content.

"The base oil market needs reliable benchmark price assessments to help support the increasing global demand for and international trade in Group 3 base oils. We are pleased to be the first to provide European Group 3 base oil price assessments to facilitate the development of the market," Argus chairman and chief executive Adrian Binks says.

The new prices are published in Argus Base Oils, a global report covering base oil prices in key markets around the world.

About Argus Media

Argus is a leading provider of price assessments, business intelligence and market data on the global crude and products, natural gas, coal, electricity, emissions and transport industries. It is headquartered in London and has offices in Houston, Washington, New York, Portland, Johannesburg, Dubai, Singapore, Tokyo, Beijing, Sydney, Moscow, Astana, Kiev, Santiago and other key centres of the energy industry. Argus was founded in 1970 and is a privately held UK-registered company. Learn more at www.argusmedia.com.

For further information contact Zhilin Yuan in Singapore at +65 6496 9966, Seana Lanigan in London at +44 20 7780 4200, Tammy Tiedt in Houston at +1 713 968 0000, or email [email protected].

SOURCE Argus Media