American Petroleum Institute

                                    

API Announces Adoption of New ILSAC and API Standards

API has adopted two new engine oil performance standards for vehicles with gasoline engines: ILSAC GF-5 and API SN. ILSAC GF-5 represents the latest performance standard set by the International Lubricant Standardization and Approval Committee (ILSAC), a joint effort of U.S. and Japanese automobile manufacturers. Most automobile manufacturers are expected to recommend oils that meet ILSAC GF-5. API SN is the most recent service category issued by API’s Lubricants Group. Oils meeting API SN and the new “Resource Conserving” designation meet all ILSAC GF-5 performance requirements. Vehicle owners and operators should follow their vehicle manufacturer’s recommendations on engine oil viscosity and performance standard.

API Announces Discontinuation of Licensing Diesel Engine Oils with API CG-4 and API CF-2 Specification

On August 31, 2009, API will discontinue licensing diesel engine oils against the API CG-4 specification. This action became necessary after API's Lubricant Committee voted by letter ballot to cease licensing against the performance specification. The Engine Manufacturers Association (EMA) has endorsed API’s decision to discontinue licensing of CG-4.

On February 1, 2010, API will discontinue licensing diesel engine oils against the API CF-2 specification. This action became necessary after ASTM Heavy Duty Engine Oil Classification Panel (HDEOCP) notified API that one of the engine tests used to document CF-2 performance, the 6V92TA test, is no longer available.

China’s consumer inflation hits 5.5% as expected

HONG KONG (Market Watch) — Chinese consumer inflation accelerated to a three-year high in May, in line with expectations and bolstering the case for tighter credit conditions to help contain prices, while other data helped round out a picture of relatively upbeat economic activity.

The consumer price index rose 5.5% in May from a year earlier, compared to April’s 5.3% gain, the fastest rise since a 6.3% gain in July 2008, according to data released Tuesday by the National Bureau of Statistics in Beijing.

A Dow Jones Newswires survey had tipped a 5.5% rise in the consumer price index.

Bank of America-Merrill Lynch economist Lu Ting said the CPI is likely to rise above 6% in June, owing to the base effect when using comparative numbers from a year earlier when vegetable prices fell sharply. Merrill forecasts the CPI will ease back to the 4%-5% range by year-end.

“We believe a hard landing is a low-probability event, and the enlarging gap between bearish perceptions and a much more stable reality could create another money-making opportunity at some point in the second half of 2011,” Lu said in a note following the data release.

The May producer price index rose 6.8%, flat from April and above the 6.5% consensus in the Dow Jones survey.

Analysts at IHS Global Insight said it was “worrying” that the PPI reading hadn’t cooled, as many market observers were expecting.

“It should be noted in particular that non-food inflation accelerated markedly in May to contribute to higher headline inflation, indicating increasing risk of inflation becoming more generalized,” they said.

Fixed-asset investment accelerated to 25.8% in the January-May period from a year earlier, picking up from the 25.4% rise in the January-April period, and beating analyst expectations of a 25.3% rise in the to Dow Jones survey.

Merrill’s Lu said the figure so far offered little evidence of a hard-landing scenario emerging, with real fixed-asset investment of around 17% to 18% growth when adjusting for inflation of raw-material prices.

Meanwhile, industrial production rose 13.3% from the year-ago period, just above the separate Dow Jones and Reuters forecasts of 13.2%, but easing slightly from 13.4% in April.

Retail sales for the month were 16.9% above May 2010’s level, compared to 17.1% growth in April, and March’s 17.4% on-year rise.

Merrill said the weaker retail sales growth was attributable to easing auto sales, which fell 3.9% in May from a year earlier, according to monthly figures released by the China Association of Automobile Manufacturers.

“The fall in auto sales is due to the expiration of some incentive plans,” said Merrill’s Lu, adding that the figures did not suggest overall consuming trends were weak.

Hong Kong and Shanghai stocks rose following the data release, with the Hang Seng Index /quotes/zigman/2622475 HK:HSI -0.59%  paring losses of about 1% to rise 0.1%, and the Shanghai Composite /quotes/zigman/1859015 CN:000001 +0.44%  also reversing course to rally 0.9%.