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Jobbers World Online News Briefs is a service to
Subscribers to the Jobbers World Newsletter.
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Is ExMo "Out" of PAO? |
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Although unconfirmed by ExMo, there are now many
whispers on the street that say ExxonMobil Chemical
will exit the merchant PAO business by the
end of the year.
The reasons for the whispers are that ExMo has
reportedly been making it increasingly difficult for
customers to source PAO from them since early in the
year. In some cases contracts were reportedly not
renewed due to what was described to customers as
“tight supply.” In other cases buyers say contracts
were renewed with price increases close to 20%. And
when asked about ExMo’s new demeanor, some were told
they might want to consider seeking alternative PAO
supply. And that is exactly what some of its
customers have done.
So although it may be no more than rumor, if
its customers are seeking alternative PAO (or Group
III) supply, the perceptions that ExMo is existing
the merchant PAO business may become a
reality. And if it does, you can be sure the supply
of PAO will get much tighter.
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More price increases! |
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Again, it what comes as no shock to anyone in this
industry, when one moves on price it seems to be
only a matter of time before others do the same. Now
its Petro-Canada, Citgo, and Castrol.
Petro-Canada announced a price increase of $0.48 a
gallon for its lubricants. With the exception of its
ATF (which also went up $0.48 a gallon), its
synthetics reportedly increased by $0.92 a gallon.
Greases are said to be up $0.13 a pound. The good
news is that the price of its process oils will
reportedly remain unchanged.
CITGO will reportedly increase prices on CITGO,
Mystik and unbranded and private label finished
lubricants. These increases will be effective after
October 30, 2006. The increase will be from 6% to
10%.
Castrol's increases include a bump of $0.56 a gallon
in the price of its packaged conventional engine
oils and $0.52 a gallon in bulk. It's mid- and
top-tier PCEOs (high mileage, blends, and
synthetics), reportedly went up $0.60 a gallon for
packaged and $0.52 in bulk.
Based on the direction the price of crude oil
has been tracking over the past month and the
reasons given for the most recent round of price
increases (higher crude prices), it will be
interesting to see if any of the majors rescind, or
modify their price increases.
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ConocoPhillips Lubricants Introduces Kendall SHP |
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ConocoPhillips Lubricants, announced the
introduction of Kendall SHP Synthetic Transoil 50, a
full synthetic manual transmission oil specifically
formulated to meet the new Eaton Roadranger PS- 164
Rev 7 specification. This new Kendall Motor Oil
product meets a recent demand for high-quality
manual transmission oils for heavy duty trucks
operating under diverse conditions, according to
Reginald Dias, director, commercial lubricants,
ConocoPhillips Lubricants.
"We identified an immediate opportunity in the
marketplace to offer our customers a manual
transmission oil that will exceed current
performance in areas such as oxidation stability,
wear protection and performance in high-temperature
environments," says Dias. "As the demands on
equipment increase, it is important that products
are made available to not only promote performance,
but also offer increased protection from the
elements. ConocoPhillips Lubricants is dedicated to
continually offering products that meet new industry
specifications while exceeding our customers'
needs.”
The new Eaton manual transmission lubricant
specification, PS-164 Rev 7, replaces previous
specifications while setting higher performance
standards for oils used for 500,000 mile drain
service in Eaton transmissions under extended
warranty. An increased need for gear pitting
protection, reduced wear, increased oil oxidation
stability and enhanced component cleanliness forced
the Original Equipment Manufacturer (OEM) to upgrade
to this new specification. Eaton recommends use of
this upgraded oil in its new transmissions and also
in older transmissions for extended warranty
coverage.
Kendall SHP Synthetic Transoil 50 will replace
Kendall Motor Oil’s heritage synthetic manual
transmission oil, Kendall SHP Synthetic Manual
Transmission Gear Lubricant 50. This new product
will provide benefits such as increased protection
against pitting and engine wear, improved thermal
stability and component cleanliness, and the
capability to reduce operating temperature in manual
transmissions. In addition, it is fully compatible
with the existing products that it will replace and
may be used as make-up oil or for complete oil
change in the Eaton transmissions. Due to revised
technology, users will notice a color change from
purple to a natural amber color in the new Kendall
SHP Synthetic Transoil 50 transmission oil.
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