· Diesel premium to crude stays strong.· Strong diesel premium sustains upward pressure on base oil prices.· US base oil values vs diesel stay lower than at start of year.· Europe Group I base oil prices struggle to keep pace with diesel, stay above long-term trend, far below 2021 levels..· Asia Group II prices stay weak vs diesel, even if well above March-April levels.· India retail diesel premium to Asia light-grade prices falls to less than $100/t, from more than $600/t in Q3 2021..· Domestic China light grades maintain small premium to diesel.· Europe Group II heavy-grade premium to Group I trending narrower; still much firmer than usual.· Europe Group III premium to Group I light grades holding close to narrowest in 10 months.· Europe Group III premium vs Group II holding close to narrowest in 10 months.· Asia Group I/II discount to Europe prices widens further.· Even if Asia Group I/II supplies don’t move to Europe, they are attractive for buyers that typically procured supplies from Europe.· Fob Asia Group I/II premium to domestic Chinese prices widens further.· Closed arbitrage to China complicates response to any pick-up in Chinese demand.· Prices incentivize Asia producers to target Americas/Europe rather than regional markets..Global base oils - week of Jun 6: Supply
