BP’s Castrol saw profit extend its gradual recovery in the second quarter of the year as less volatile feedstock costs balanced out weak global lubricants demand.The lube blender’s underlying replacement cost profit of $171mn in the three months to end-June rose from $161mn in the first three months of the year.Profit rose for a third straight quarter but remained 23pc down from year-earlier levels.The year-on-year contraction in quarterly profit was the eighth in a row.Weak economic growth and slowing lubricants demand curbed global blenders’ leverage to pass on higher feedstock costs since early-2022.Base oils prices rose again in most markets in the second quarter of 2023 from the first three months of the year.The size of the price-increase was much smaller than during the same time last year. Outright base oils prices in the second quarter were also much lower than year-earlier levels..Shell’s Q2 lube profit stays high
BP’s Castrol saw profit extend its gradual recovery in the second quarter of the year as less volatile feedstock costs balanced out weak global lubricants demand.The lube blender’s underlying replacement cost profit of $171mn in the three months to end-June rose from $161mn in the first three months of the year.Profit rose for a third straight quarter but remained 23pc down from year-earlier levels.The year-on-year contraction in quarterly profit was the eighth in a row.Weak economic growth and slowing lubricants demand curbed global blenders’ leverage to pass on higher feedstock costs since early-2022.Base oils prices rose again in most markets in the second quarter of 2023 from the first three months of the year.The size of the price-increase was much smaller than during the same time last year. Outright base oils prices in the second quarter were also much lower than year-earlier levels..Shell’s Q2 lube profit stays high
