· Crude oil prices stay in narrow range as prospect of tighter-than-expected crude oil supply in Q2 2024 counters impact of weak economic growth.· Diesel price premium to crude oil stays in range it has mostly held in since start of Q4 2023.· Global base oils demand faces prospect of seasonal boost in coming weeks, especially in Asia.· Lube demand often peaks in markets like Thailand, India and Japan in the month of March.· China’s base oils demand holds steady for now, with signs appearing of more-than-sufficient supply to meet requirements.· Demand in southeast Asia shows signs of holding firm.· India’s base oils demand could be more muted as prospect of slowdown in lube consumption at start of Q2 2024 adds to incentive to manage stocks carefully.· Europe’s export price discount to domestic prices narrows sharply, pointing to firmer supply-demand fundamentals.· Relative lack of stock-building by blenders ahead of spring oil-change season reflects concern about ongoing demand weakness, expectations of sufficient supplies, and preference to maintain low inventories.· Lack of stock-building leaves buyers more exposed to risk of firmer-than-expected demand or lower-than-expected supply.· US buyers face incentive to procure smaller volumes more frequently to cover seasonal pick-up in demand.· Strategy takes advantage of healthy availability of supply, limits exposure to possibility of slower-than-expected demand, and keeps stocks lean.· Competitive US export prices likely to sustain steady buying interest in overseas markets like Latin America, even if buyers require smaller volumes..Global base oils margins outlook: Week of March 11.Global base oils arb outlook: Week of March 11
· Crude oil prices stay in narrow range as prospect of tighter-than-expected crude oil supply in Q2 2024 counters impact of weak economic growth.· Diesel price premium to crude oil stays in range it has mostly held in since start of Q4 2023.· Global base oils demand faces prospect of seasonal boost in coming weeks, especially in Asia.· Lube demand often peaks in markets like Thailand, India and Japan in the month of March.· China’s base oils demand holds steady for now, with signs appearing of more-than-sufficient supply to meet requirements.· Demand in southeast Asia shows signs of holding firm.· India’s base oils demand could be more muted as prospect of slowdown in lube consumption at start of Q2 2024 adds to incentive to manage stocks carefully.· Europe’s export price discount to domestic prices narrows sharply, pointing to firmer supply-demand fundamentals.· Relative lack of stock-building by blenders ahead of spring oil-change season reflects concern about ongoing demand weakness, expectations of sufficient supplies, and preference to maintain low inventories.· Lack of stock-building leaves buyers more exposed to risk of firmer-than-expected demand or lower-than-expected supply.· US buyers face incentive to procure smaller volumes more frequently to cover seasonal pick-up in demand.· Strategy takes advantage of healthy availability of supply, limits exposure to possibility of slower-than-expected demand, and keeps stocks lean.· Competitive US export prices likely to sustain steady buying interest in overseas markets like Latin America, even if buyers require smaller volumes..Global base oils margins outlook: Week of March 11.Global base oils arb outlook: Week of March 11