· Crude oil prices fall to low end of narrow $72-77/bl range over most of past three months on persistent concerns of economic slowdown, combined with signs of higher-than-expected crude oil supply.· Prospect of higher interest rates, and interest rates staying higher for longer in US and Eurozone, add to expectations of more prolonged slowdown in economic growth.· UK’s larger-than-expected rise in interest rates amid higher-than-expected inflation add to prospect of steeper economic slowdown. · Europe’s June PMI falls, especially for manufacturing, raising expectations of extended slowdown in economic activity.· China’s stimulus measures deemed insufficient so far to reverse weaker-than-expected economic recovery.· Global lube demand falls by around 1mn t in Q1 2023 vs year-earlier levels, complicating refiners’ ability to clear surplus base oils volumes and cushioning the impact of plant maintenance work in Q2 2023..· Sustained slowdown in global lube demand likely extends through Q2 and Q3 2023.· Blenders’ moves to hold lower inventories compounds impact of seasonal and economic factors driving down demand.· Completion of inventory adjustments likely to curb impact of that factor putting pressure on lube demand..Global base oils – week of June 26: Price outlook - margins.Contact us for more information about the data for these stories
· Crude oil prices fall to low end of narrow $72-77/bl range over most of past three months on persistent concerns of economic slowdown, combined with signs of higher-than-expected crude oil supply.· Prospect of higher interest rates, and interest rates staying higher for longer in US and Eurozone, add to expectations of more prolonged slowdown in economic growth.· UK’s larger-than-expected rise in interest rates amid higher-than-expected inflation add to prospect of steeper economic slowdown. · Europe’s June PMI falls, especially for manufacturing, raising expectations of extended slowdown in economic activity.· China’s stimulus measures deemed insufficient so far to reverse weaker-than-expected economic recovery.· Global lube demand falls by around 1mn t in Q1 2023 vs year-earlier levels, complicating refiners’ ability to clear surplus base oils volumes and cushioning the impact of plant maintenance work in Q2 2023..· Sustained slowdown in global lube demand likely extends through Q2 and Q3 2023.· Blenders’ moves to hold lower inventories compounds impact of seasonal and economic factors driving down demand.· Completion of inventory adjustments likely to curb impact of that factor putting pressure on lube demand..Global base oils – week of June 26: Price outlook - margins.Contact us for more information about the data for these stories
