· Europe Group I base oil premium to diesel rises to highest in nine months.· Europe Group II premium to diesel rises to highest in five months..· Rising premium insinuates increasingly firm demand/tight supply fundamentals and incentivizes refiners to raise production.· Europe market’s demand-fundamentals show signs of firming vs earlier this year. · Buyers’ preference to maintain lower stocks and their ability to cover requirements with ease suggests supply-demand fundamentals are more balanced rather than tight.· US posted price premium to heating oil rises to highest this year, despite outright posted-price cut in April.· Firm premium to diesel incentivizes US refiners to maintain or raise base oils output..· Asia’s Group I/II base oil premium to diesel rises to highest in nine months..· Like Europe, firm premium to diesel insinuates strong fundamentals.· Firm premium incentivizes higher base oils production, which eases supply-tightness if supply is tight, adds to surplus if supply is balanced.· Domestic Chinese Group II light-grade premium to diesel holds firm, close to highest level this year.· Strong premium to diesel insinuates firm supply-demand fundamentals, incentivizes domestic refiners to raise output..Global base oils - week of April 24: Demand outlook.Base Oil News stories and analysis also available on ICIS platform
