· Global base oils values extend slide vs diesel as steady-to-weak outright prices contrast with rising feedstock costs.· Base oils values vs diesel remain well above lows at start of year.· But falling base oils values vs diesel incentivize refiners to adjust production in a way that gives them leverage to maintain or raise outright prices.· Europe’s Group I base oils price premium to diesel falls more than $200/t since early June to four-month low.· Europe’s Group II base oils premium to diesel falls by more than $100/t since early June to three-month low..· Asia’s Group I base oils values vs diesel fall to lowest since early February; Group II values fall to lowest since early March..· Base oils values fall to levels that incentivize refiners to cut production.· Domestic Chinese N150 base oils price premium to Shandong diesel prices extends fall to lowest since 2H Jan 2023; holds well above 2H 2022 levels..· US base oils export values face similar downward pressure vs diesel, compounded by their competitive levels vs prices in overseas markets.· Trend incentivizes refiners to cut output of surplus supplies as arbitrage stays workable but uneconomic..Global base oils - week of July 10: Demand outlook
· Global base oils values extend slide vs diesel as steady-to-weak outright prices contrast with rising feedstock costs.· Base oils values vs diesel remain well above lows at start of year.· But falling base oils values vs diesel incentivize refiners to adjust production in a way that gives them leverage to maintain or raise outright prices.· Europe’s Group I base oils price premium to diesel falls more than $200/t since early June to four-month low.· Europe’s Group II base oils premium to diesel falls by more than $100/t since early June to three-month low..· Asia’s Group I base oils values vs diesel fall to lowest since early February; Group II values fall to lowest since early March..· Base oils values fall to levels that incentivize refiners to cut production.· Domestic Chinese N150 base oils price premium to Shandong diesel prices extends fall to lowest since 2H Jan 2023; holds well above 2H 2022 levels..· US base oils export values face similar downward pressure vs diesel, compounded by their competitive levels vs prices in overseas markets.· Trend incentivizes refiners to cut output of surplus supplies as arbitrage stays workable but uneconomic..Global base oils - week of July 10: Demand outlook