· Rising feedstock costs, more balanced supply and firmer demand give refiners in Europe and Asia more leverage to target higher prices.· Europe’s Group I/II base oils premium to gasoil stays relatively steady amid firm outright prices and as gasoil struggles to keep pace with higher crude prices.· Europe’s Group I premium to gasoil holds close to highest since last September; premium likely to get support from more balanced supply-demand fundamentals.· Europe’s Group II premium to gasoil show signs of having bottomed out; signs of more balanced fundamentals provide further support..· US producers hold back from more posted price-cuts as rising feedstock prices trim margins.· Asia-Pacific Group I/II premium to gasoil edges down, holds close to highest since early August.· Asia-Pacific Group I/II premium to gasoil likely to hold firm or rise, with fundamentals firmer than year-earlier levels.· China’s domestic Group II light-grade price premium to diesel holds close to highest since late-November..· China’s firm base oil premium should incentivize refiners to raise output.· China’s low base oils output and plant maintenance work suggests refiners remain cautious even with firmer premium to diesel.· India’s retail diesel premium to regional light-grade base oils prices holds steady at levels that coincided with sustained slowdown in very-light grade base oils imports since middle of last year..Americas/EMEA base oils – week of Apr 10: Supply outlook
· Rising feedstock costs, more balanced supply and firmer demand give refiners in Europe and Asia more leverage to target higher prices.· Europe’s Group I/II base oils premium to gasoil stays relatively steady amid firm outright prices and as gasoil struggles to keep pace with higher crude prices.· Europe’s Group I premium to gasoil holds close to highest since last September; premium likely to get support from more balanced supply-demand fundamentals.· Europe’s Group II premium to gasoil show signs of having bottomed out; signs of more balanced fundamentals provide further support..· US producers hold back from more posted price-cuts as rising feedstock prices trim margins.· Asia-Pacific Group I/II premium to gasoil edges down, holds close to highest since early August.· Asia-Pacific Group I/II premium to gasoil likely to hold firm or rise, with fundamentals firmer than year-earlier levels.· China’s domestic Group II light-grade price premium to diesel holds close to highest since late-November..· China’s firm base oil premium should incentivize refiners to raise output.· China’s low base oils output and plant maintenance work suggests refiners remain cautious even with firmer premium to diesel.· India’s retail diesel premium to regional light-grade base oils prices holds steady at levels that coincided with sustained slowdown in very-light grade base oils imports since middle of last year..Americas/EMEA base oils – week of Apr 10: Supply outlook