Base Oil Report: Base Oil demand in USA remains status quo, but rising crude oil prices have compelled refiners to go for a moderate hike. Group I Paraffinic Base Oil prices for all grades have been announced by Valero in the range of 25 – 30 cents per gallon. While Napthenic Base Oil price hike have been announced by ERGON, NYNAS, CALUMET & CROSS OIL with progressive dates in Nov 2009. The reasons for hiking the base oil prices are high operating costs & strong demand for heavier Pale oils. Demand is expected to spur up with inventory levels at a low level on account of year end. It would be no wonder if prices are up by USD 50 – 80 per MT at the start of the new year. Prices in the domestic market is hovering around USD 790 - 810/755 - 775/850 - 930/890 – 960 per MT for TOBS-SN -70/SN -150/500/BS-150 respectively. It is also heard that odd grades like SN -100/N-100 are offered at a discounted price by the refiners. FOB export prices for N -70 - TOBS/150/500/Bright Stock are in the range of USD 700 - 710/695 - 715/730 - 740/815 – 865 per MT respectively. Demand for lighter grades Group II is huge from the transformer oil & Petroleum Jelly manufacturers. For shipment to India, products of refiners like Conoco, Calumet, Ergon, etc are more actively involved. Reportedly there may be sizeable quantity getting ready for the shipment to Asian region.