· Base oils values remain firm vs diesel, especially in Europe, even after correcting lower over past month.· Firm base oils values contrast with much weaker diesel premium to crude v Q2 2022-Q1 2023 levels.· Europe’s Group I/II base oils values edge up vs diesel after slipping since 1H May..· Europe’s base oils values vs diesel hold firm vs 2H 2022/Q1 2023 at levels that incentivize refiners to maintain or increase base oils output.· Europe’s Group I base oils values vs diesel remain up more than $370/t since mid-January; Group II values remain up less than $200/t since mid-January, reflecting outperformance of Group I during that time.· Asia’s Group I/II base oils values vs diesel edge up after dipping from 1H May..· Asia’s Group I//II base oils values vs diesel rise less sharply than in Europe since 1H January, fall more sharply since 1H May.· Asia’s Group II base oils values vs diesel continue to outpace Group I values since mid-January, contrasting with Europe’s Group I price strength vs diesel.· China’s domestic Group II light-grade base oils premium to Shandong diesel prices extends rise since early June even as domestic output rises..· Domestic base oils premium to diesel moves closer to high end of range over last two years.· China’s firmer domestic base oils premium to diesel in recent weeks, amid rising supply, insinuates firmer demand to absorb the supply.· US Group II light-grade base oils price premium to diesel holds close to lower end of range since Feb 2023, above Oct 2022-Jan 2023 levels..· US Group II light-grade base oils premium to diesel holds well below Q3 2022 levels, when high prices attracted arbitrage supplies and incentivized refiners to boost base oils output..Global base oils - week of June 19: Price outlook - arbitrage
· Base oils values remain firm vs diesel, especially in Europe, even after correcting lower over past month.· Firm base oils values contrast with much weaker diesel premium to crude v Q2 2022-Q1 2023 levels.· Europe’s Group I/II base oils values edge up vs diesel after slipping since 1H May..· Europe’s base oils values vs diesel hold firm vs 2H 2022/Q1 2023 at levels that incentivize refiners to maintain or increase base oils output.· Europe’s Group I base oils values vs diesel remain up more than $370/t since mid-January; Group II values remain up less than $200/t since mid-January, reflecting outperformance of Group I during that time.· Asia’s Group I/II base oils values vs diesel edge up after dipping from 1H May..· Asia’s Group I//II base oils values vs diesel rise less sharply than in Europe since 1H January, fall more sharply since 1H May.· Asia’s Group II base oils values vs diesel continue to outpace Group I values since mid-January, contrasting with Europe’s Group I price strength vs diesel.· China’s domestic Group II light-grade base oils premium to Shandong diesel prices extends rise since early June even as domestic output rises..· Domestic base oils premium to diesel moves closer to high end of range over last two years.· China’s firmer domestic base oils premium to diesel in recent weeks, amid rising supply, insinuates firmer demand to absorb the supply.· US Group II light-grade base oils price premium to diesel holds close to lower end of range since Feb 2023, above Oct 2022-Jan 2023 levels..· US Group II light-grade base oils premium to diesel holds well below Q3 2022 levels, when high prices attracted arbitrage supplies and incentivized refiners to boost base oils output..Global base oils - week of June 19: Price outlook - arbitrage
