· Europe’s Group II prices stay wide vs US prices, widen further vs Asia prices.· Europe’s wide Group II price premium sustains attraction of targeting the market with surplus volumes from US and Asia.· Europe’s Group I price premium to Asia prices narrows further.· Narrowing premium increases risk of lining up arbitrage shipments from Asia/Mideast Gulf to Europe.· Europe’s Group I price premium stays wide, sustaining attraction for buyers in India/Mideast Gulf to target Asia cargoes instead.· Arbitrage to move Asia supplies to Americas stays hard to work except for Group I bright stock.· Discount of Asia Group II base oils to domestic China prices improves to firmest level in two months, still narrower than Q4 2022 and Q1 2023.· Continuation of the trend would start to make arbitrage more feasible.· Asia Group I price differentials vs domestic Chinese prices improves. But arbitrage stays hard to work for now..Global base oils - week of July 10: Price outlook - margins
· Europe’s Group II prices stay wide vs US prices, widen further vs Asia prices.· Europe’s wide Group II price premium sustains attraction of targeting the market with surplus volumes from US and Asia.· Europe’s Group I price premium to Asia prices narrows further.· Narrowing premium increases risk of lining up arbitrage shipments from Asia/Mideast Gulf to Europe.· Europe’s Group I price premium stays wide, sustaining attraction for buyers in India/Mideast Gulf to target Asia cargoes instead.· Arbitrage to move Asia supplies to Americas stays hard to work except for Group I bright stock.· Discount of Asia Group II base oils to domestic China prices improves to firmest level in two months, still narrower than Q4 2022 and Q1 2023.· Continuation of the trend would start to make arbitrage more feasible.· Asia Group I price differentials vs domestic Chinese prices improves. But arbitrage stays hard to work for now..Global base oils - week of July 10: Price outlook - margins
