· Diesel premium to crude stays unusually high in US/Europe.· Tight middle distillates supply/high premiums incentivize refiners to focus on diesel/jet fuel.· Strong diesel prices incentivize base oil refiners to hold off producing additional supplies beyond term commitments.· Strong diesel prices likely to have largest impact/cut surplus supply of very-light grade base oils.· Retail diesel prices in India continue to lag higher crude, squeezing diesel margins. But diesel margins remain much firmer using discounted crude.· Chinese diesel prices remain steady/low vs crude.· Japan’s refinery run rates hold at lower level.· China’s refinery run rates in Shandong extend rebound..· Base oil plant maintenance in Europe expected to end in coming weeks, boosting supply.· Europe supply could improve further in face of easing demand.· Any drop in demand for term supplies would free up more volumes for spot market.· Italy’s base oil supply falls to less than half typical levels in first four months of 2022. · India’s May base oils supply falls to 3-month low, still firm. · Singapore’s base oil exports show signs of strong rebound in June vs May.· Singapore’s base oil exports over last four weeks rise to highest average volume in at least 3 months.· Singapore’s base oil exports to China show signs of rebounding in June vs April-May levels..· Singapore’s base oil exports last week included rare shipment to Italy – first in more than five years.· Singapore sees sustained slowdown in imports from Europe in recent weeks.· Singapore took delivery of another cargo from Saudi Arabia last week.· Taiwan loads unusually large shipment of Group II base oils on single vessel in recent days. · India set to take delivery of cargoes from Saudi Arabia, Singapore over coming week.· Nigeria takes delivery of cargoes from Europe, USGC in June.· Kenya takes delivery of more than 11,000t in June, after sharp slowdown in May..Global base oils - week Jun 27: Demand
