Global base oils - week of Oct 17: Market outlook

·        Firming domestic Chinese Group II light-grade prices dampen attraction of exporting more supplies from China.

·        Firmer domestic Chinese prices boost competitiveness/attraction of Group II supplies from Taiwan.

·        Prospect of rise in Taiwan shipments to China would cut supplies for other markets.

·        Surge in Taiwan shipments to Americas/India/SE Asia/UAE in Q3 had been a major factor that kept pressure on prices.

·         Prospect of lower Chinese base oils exports / lower Taiwan base oils exports to other markets would ease persistent supply overhang, support firmer Asia-Pacific prices.