05 May 2021

Oil Supply Chain Update 2021

The lubricants industry is facing unprecedented issues in the supply chain which are affecting base oils and additives used in all lubricant products. 

As you may be aware, over the recent months there has been a global reduction in base oil stock availability due to Covid-19 pandemic.  There has also been planned refinery maintenance, unplanned refinery shutdowns and the blockage in the Suez Canal. 

Many suppliers have restricted supply and prices have risen drastically.

Chemical Corporation is working very closely with Exxon Mobil to manage this situation for our customers.  We have put measures in place to limit the impact on our customers and to effectively manage our stock quota each month.

The will make the following changes for existing customers with immediate effect:

  • We can no longer offer customers one month’s notice on price changes.
  • Orders will be reviewed on a daily basis to ensure we distribute our stock to multiple customers.  You will be advised if there is a supply issue.
  • Certain products might be on longer lead times due to supply shortages and you will be advised if this becomes the case.

We want to make sure we keep your machines and equipment running and will keep you updated with developments. 

You can read an in-depth report on the base oil crisis by clicking here.