· Global crude oil prices fall at start of the week as easing geopolitical concerns shift focus back to weak supply-demand fundamentals.· Diesel premium to crude oil holds close to lowest in more than two years.· Lower crude oil prices set to trigger jump in base oils premium to crude oil and diesel.· Any such rise in base oils premium would come at a time when global base oils demand faces seasonal slowdown ahead of typical sharp fall in lube consumption in month of December.· Base oils supply set to face more upward pressure as demand tapers off in coming weeks and plant maintenance draws to a close.· Rising base oils margins and weaker supply-demand fundamentals could add to buyers’ preference to hold back on expectations that prices will adjust to better reflect supply-demand fundamentals.· Demand could hold steadier if market avoids large build-up of surplus supplies in coming months.· Asia’s base oils demand likely to stay mixed, with China covering more of its requirements with supplies from domestic refiners.· Demand in southeast Asia and India could get support from moves to replenish low stocks.· Europe’s base oils demand likely to stay muted as blenders prepare for seasonal dip in lube consumption at year-end.· Overseas demand for European supplies could stay more muted, with arbitrage still hard to work.· US base oils demand set to ease as blenders focus on working down existing stocks of feedstock and finished lube supplies.· Latin America’s base oils demand could face steeper slowdown in coming weeks if lube consumption weakens, compounding seasonal slowdown.· Regional demand could see stronger pick-up at year-end or early next year if buyers cut inventories more steeply in order to benefit from expectations of more competitive prices in coming months..Global base oils margins outlook: Week of 28 Oct.Global base oils arb outlook: Week of 28 Oct.Asia base oils demand outlook: Week of 28 Oct
· Global crude oil prices fall at start of the week as easing geopolitical concerns shift focus back to weak supply-demand fundamentals.· Diesel premium to crude oil holds close to lowest in more than two years.· Lower crude oil prices set to trigger jump in base oils premium to crude oil and diesel.· Any such rise in base oils premium would come at a time when global base oils demand faces seasonal slowdown ahead of typical sharp fall in lube consumption in month of December.· Base oils supply set to face more upward pressure as demand tapers off in coming weeks and plant maintenance draws to a close.· Rising base oils margins and weaker supply-demand fundamentals could add to buyers’ preference to hold back on expectations that prices will adjust to better reflect supply-demand fundamentals.· Demand could hold steadier if market avoids large build-up of surplus supplies in coming months.· Asia’s base oils demand likely to stay mixed, with China covering more of its requirements with supplies from domestic refiners.· Demand in southeast Asia and India could get support from moves to replenish low stocks.· Europe’s base oils demand likely to stay muted as blenders prepare for seasonal dip in lube consumption at year-end.· Overseas demand for European supplies could stay more muted, with arbitrage still hard to work.· US base oils demand set to ease as blenders focus on working down existing stocks of feedstock and finished lube supplies.· Latin America’s base oils demand could face steeper slowdown in coming weeks if lube consumption weakens, compounding seasonal slowdown.· Regional demand could see stronger pick-up at year-end or early next year if buyers cut inventories more steeply in order to benefit from expectations of more competitive prices in coming months..Global base oils margins outlook: Week of 28 Oct.Global base oils arb outlook: Week of 28 Oct.Asia base oils demand outlook: Week of 28 Oct
