· Americas base oils demand likely to get support from seasonal rise in consumption in US, concern about higher prices.· US’ weekly gasoline demand rises in late August for twenty-second time in twenty-three weeks..· Regional blenders' concern about higher prices likely to get support from strong diesel prices, rising feedstock costs and US refiners’ smaller supply-build during summer months.· Peak hurricane-season period could add to US buyers’ incentive to procure additional supplies as buffer against supply disruptions.· US buyers likely to focus on maintaining leaner stocks even as they cover for seasonal uptick in demand..· Argentina’s July lube demand falls for fifth time in six months on dip in automobile lubricants consumption..· Lower consumption contrasts with still-firm demand in Brazil, pointing to signs of diverging demand trends throughout Latin America.· Lower demand would coincide with and compound Latin America's seasonal dip in lube consumption in coming months..· US’ share of Argentina’s base oils imports stays high in July amid ongoing dearth of arbitrage shipments from other markets..· Trend contrasts with wave of arb shipments to Argentina in 2H 2022, provides US refiners with valuable outlet for their supplies..· Europe’s July car sales extend rise, with surging electric-vehicle sales accounting for most of the increase..· Europe’s base oils demand could revive more strongly than usual over coming weeks after blenders cut inventories in first-half 2023.· Blenders’ low stocks contrast with their more plentiful inventories this time a year earlier, combined with weaker-than-expected lube demand at that time.· Blenders face seasonal pick-up in lube demand in coming weeks that shows signs of falling at a slower pace from year-earlier levels..· Italy’s July lube demand rises for second month, adding to signs of more sustained recovery in country’s lubricants consumption.· Demand rises on rebounding consumption of industrial oils..· Trend contrasts with past year, when firmer automobile lubricants consumption cushioned slowdown in country’s lube demand.· Firmer lube demand and industrial oils demand contrasts with other markets in Europe, highlighting diverging consumption trends throughout region..· UK’s June base oils output falls to fifteen-month low, reversing recent surge in country’s supply in April and May..· Firm base oils imports cushion’s UK’s drop in June supplies amid surge in shipments from Netherlands.· Trend helps to absorb more supplies from Netherlands, cutting surplus supply in both markets ahead of seasonal slowdown in demand in Q3 2023..· Netherlands’ domestic/overseas base oils/lube demand holds in narrow range in June for fourth month, extends slide from year-earlier levels..· Netherlands’s lower demand partly reflects more limited supply, curbing availability of supplies to move to overseas markets. · Trend curbs prospect of rise in surplus supply..Global base oils - week of Sep 4: Price outlook - arbitrage
· Americas base oils demand likely to get support from seasonal rise in consumption in US, concern about higher prices.· US’ weekly gasoline demand rises in late August for twenty-second time in twenty-three weeks..· Regional blenders' concern about higher prices likely to get support from strong diesel prices, rising feedstock costs and US refiners’ smaller supply-build during summer months.· Peak hurricane-season period could add to US buyers’ incentive to procure additional supplies as buffer against supply disruptions.· US buyers likely to focus on maintaining leaner stocks even as they cover for seasonal uptick in demand..· Argentina’s July lube demand falls for fifth time in six months on dip in automobile lubricants consumption..· Lower consumption contrasts with still-firm demand in Brazil, pointing to signs of diverging demand trends throughout Latin America.· Lower demand would coincide with and compound Latin America's seasonal dip in lube consumption in coming months..· US’ share of Argentina’s base oils imports stays high in July amid ongoing dearth of arbitrage shipments from other markets..· Trend contrasts with wave of arb shipments to Argentina in 2H 2022, provides US refiners with valuable outlet for their supplies..· Europe’s July car sales extend rise, with surging electric-vehicle sales accounting for most of the increase..· Europe’s base oils demand could revive more strongly than usual over coming weeks after blenders cut inventories in first-half 2023.· Blenders’ low stocks contrast with their more plentiful inventories this time a year earlier, combined with weaker-than-expected lube demand at that time.· Blenders face seasonal pick-up in lube demand in coming weeks that shows signs of falling at a slower pace from year-earlier levels..· Italy’s July lube demand rises for second month, adding to signs of more sustained recovery in country’s lubricants consumption.· Demand rises on rebounding consumption of industrial oils..· Trend contrasts with past year, when firmer automobile lubricants consumption cushioned slowdown in country’s lube demand.· Firmer lube demand and industrial oils demand contrasts with other markets in Europe, highlighting diverging consumption trends throughout region..· UK’s June base oils output falls to fifteen-month low, reversing recent surge in country’s supply in April and May..· Firm base oils imports cushion’s UK’s drop in June supplies amid surge in shipments from Netherlands.· Trend helps to absorb more supplies from Netherlands, cutting surplus supply in both markets ahead of seasonal slowdown in demand in Q3 2023..· Netherlands’ domestic/overseas base oils/lube demand holds in narrow range in June for fourth month, extends slide from year-earlier levels..· Netherlands’s lower demand partly reflects more limited supply, curbing availability of supplies to move to overseas markets. · Trend curbs prospect of rise in surplus supply..Global base oils - week of Sep 4: Price outlook - arbitrage