BP’s Castrol saw profit rise in the third quarter for the first time in more than two years as lower base oils prices cut feedstock costs.Castrol’s underlying replacement cost profit of $185mn in the three months to end-September rose from $171mn in the second quarter and by 23pc from year-earlier levels.The last time that profit rose from year-earlier levels was in first-half 2021.Global base oils prices mostly trended higher since then. They started to ease from second-half 2022 and then hold steadier from the start of the second quarter of this year.Lubricant prices tend to lag changes in base oils prices.Weak finished lube demand over the past year added to blenders’ difficulty with implementing prices that reflected the higher feedstock costs.Castrol’s stronger margins in recent months contrasted with weaker profit margins for base oils refiners as steadier base oils prices lagged rebounding crude oil prices in the third quarter..S-Oil’s Q3 base oils profit falls
BP’s Castrol saw profit rise in the third quarter for the first time in more than two years as lower base oils prices cut feedstock costs.Castrol’s underlying replacement cost profit of $185mn in the three months to end-September rose from $171mn in the second quarter and by 23pc from year-earlier levels.The last time that profit rose from year-earlier levels was in first-half 2021.Global base oils prices mostly trended higher since then. They started to ease from second-half 2022 and then hold steadier from the start of the second quarter of this year.Lubricant prices tend to lag changes in base oils prices.Weak finished lube demand over the past year added to blenders’ difficulty with implementing prices that reflected the higher feedstock costs.Castrol’s stronger margins in recent months contrasted with weaker profit margins for base oils refiners as steadier base oils prices lagged rebounding crude oil prices in the third quarter..S-Oil’s Q3 base oils profit falls
