· Crude oil prices fall to lowest this month as expectations of higher interest rates for longer raise prospect of curbing demand, countering impact of tighter-than-expected supply.· Diesel premium to crude oil extends fall to lowest since Q2 2023, cutting attraction of producing the motor fuel.· Recent volatility of crude oil prices, combined with more sustained weakness of diesel prices, could incentivize base oils buyers to hold back.· Signs of healthy base oils availability add to buyers’ flexibility to hold off, and the leverage to procure on a need-to basis even with a seasonal pick-up in demand in markets like US and Europe.· Asia’s base oils demand shows more mixed signals as buyers take time to replenish stocks.· China’s demand for overseas supplies of Group II base oils could slow further amid pick-up in domestic supply, preference to maintain low stocks.· India’s buyers could hold off in anticipation of price-adjustments in response to weaker crude oil/diesel prices.· India’s base oils demand for supplies from Asia could get support from concern about less regular availability from other sources.· Muted rise in US/Europe domestic base oils prices points to expectations of sufficient availability even with seasonal rise in demand.· Expectations of sufficient availability boost attraction for buyers to maintain low stocks.· Demand for Group II base oils in Middle East could ease as wave of overseas shipments reaches the region..Global base oils margins outlook: Week of 22 April.Global base oils arb outlook: Week of 22 April.Asia base oils demand outlook: Week of 22 April
· Crude oil prices fall to lowest this month as expectations of higher interest rates for longer raise prospect of curbing demand, countering impact of tighter-than-expected supply.· Diesel premium to crude oil extends fall to lowest since Q2 2023, cutting attraction of producing the motor fuel.· Recent volatility of crude oil prices, combined with more sustained weakness of diesel prices, could incentivize base oils buyers to hold back.· Signs of healthy base oils availability add to buyers’ flexibility to hold off, and the leverage to procure on a need-to basis even with a seasonal pick-up in demand in markets like US and Europe.· Asia’s base oils demand shows more mixed signals as buyers take time to replenish stocks.· China’s demand for overseas supplies of Group II base oils could slow further amid pick-up in domestic supply, preference to maintain low stocks.· India’s buyers could hold off in anticipation of price-adjustments in response to weaker crude oil/diesel prices.· India’s base oils demand for supplies from Asia could get support from concern about less regular availability from other sources.· Muted rise in US/Europe domestic base oils prices points to expectations of sufficient availability even with seasonal rise in demand.· Expectations of sufficient availability boost attraction for buyers to maintain low stocks.· Demand for Group II base oils in Middle East could ease as wave of overseas shipments reaches the region..Global base oils margins outlook: Week of 22 April.Global base oils arb outlook: Week of 22 April.Asia base oils demand outlook: Week of 22 April
