Global base oils - week of April 24: Demand outlook

·        Crude oil prices fall sharply over past week to lowest this month.

·        Price-drop reverses almost all the price-surge in early April following OPEC+ announcement to cut crude production from May.

·        Prices fall as concern about slowing global economic growth outweighs prospect of tighter supply.

·        Diesel prices fall more steeply than crude – adding to signs of slower global economic growth and incentivizing refiners to trim crude oil procurement.

·        Crude oil prices mostly maintain activity in $75-85/bl range since early December.

·        Price signals that suggest slowing growth add to incentive for lubricant blenders to maintain lower inventories and to procure smaller volumes more frequently.

·        Strategy would limit exposure to slowdown in demand, free up more cash, limit borrowing requirements.