· Crude oil prices hold close to highest since Oct 2023 after sustained rise over past month as prospect of firmer-than-expected demand magnifies impact of tighter supply.· Diesel premium to crude oil holds steady close to lowest since July 2023.· Base oils demand could get support from prospect of upward pressure on prices in response to rising feedstock costs.· Demand could be more responsive to that prospect in US and Europe, where lube demand faces a seasonal pick-up, and less responsive in Asia, where demand faces a seasonal slowdown.· Asia’s base oils demand for spot supplies could ease as buyers cover more requirements with term volumes.· China’s base oils demand shows signs of staying sufficient to absorb domestic supplies, with limited requirements for top-up supplies from regional refiners.· India’s base oils demand could face seasonal slowdown at start of Q2 2024.· Signs of steady flows from Saudi Arabia to India, and prospect of large volume of shipments from South Korea and US, curb further any urgency to buy.· Europe’s base oils demand could get support from signs of firmer fundamentals and upward price pressure.· Europe’s Group I brightstock export price premium to domestic prices widens further.· Trend points to firm overseas demand, raising prospect of tighter regional supply. · US base oils demand could get boost from signs of more balanced fundamentals and additional moves to raise posted prices.· Several refiners last week announce additional rise in posted prices; the decision could trigger similar moves by other refiners.· Demand could get further boost from buyers seeking to lock in additional supplies at current price levels before any such announcements..Global base oils margins outlook: Week of April 8.Global base oils arb outlook: Week of April 8
· Crude oil prices hold close to highest since Oct 2023 after sustained rise over past month as prospect of firmer-than-expected demand magnifies impact of tighter supply.· Diesel premium to crude oil holds steady close to lowest since July 2023.· Base oils demand could get support from prospect of upward pressure on prices in response to rising feedstock costs.· Demand could be more responsive to that prospect in US and Europe, where lube demand faces a seasonal pick-up, and less responsive in Asia, where demand faces a seasonal slowdown.· Asia’s base oils demand for spot supplies could ease as buyers cover more requirements with term volumes.· China’s base oils demand shows signs of staying sufficient to absorb domestic supplies, with limited requirements for top-up supplies from regional refiners.· India’s base oils demand could face seasonal slowdown at start of Q2 2024.· Signs of steady flows from Saudi Arabia to India, and prospect of large volume of shipments from South Korea and US, curb further any urgency to buy.· Europe’s base oils demand could get support from signs of firmer fundamentals and upward price pressure.· Europe’s Group I brightstock export price premium to domestic prices widens further.· Trend points to firm overseas demand, raising prospect of tighter regional supply. · US base oils demand could get boost from signs of more balanced fundamentals and additional moves to raise posted prices.· Several refiners last week announce additional rise in posted prices; the decision could trigger similar moves by other refiners.· Demand could get further boost from buyers seeking to lock in additional supplies at current price levels before any such announcements..Global base oils margins outlook: Week of April 8.Global base oils arb outlook: Week of April 8
