· Global base oils values face growing pressure versus rising diesel and crude prices as outright prices hold steady or fall.· Europe’s Group I base oil values vs diesel fall more than $250/t in little more than a month to lowest since end-Feb 2023..· Europe’s Group II base oils values vs diesel fall less sharply on steadier outright prices and weaker US dollar vs euro.· Trend suggests Group I base oils face pressure from oversupply, incentivizes refiners to cut production.· Asia Group I prices fall to discount to diesel for first time since 2H Jan 2023; Group II prices barely maintain premium to diesel..· Asia Group I/II premium to diesel falls more than $250/t in past two months.· Trend suggests market faces oversupply that prevents refiners from raising prices.· Trend incentivizes refiners to cut production.· China’s domestic Group II light-grade price-premium to Shandong diesel prices falls to nine-month low..· Base oil premium to diesel falls despite recent imposition of consumption tax on industrial white oils.· Sliding base oil premium to diesel suggests market faces weak demand and surplus supply.· Trend likely to deter start-up of new refining capacity, incentivize other refiners to undergo or extend plant maintenance.· US Group II light-grade posted price premium to heating oil falls to lowest since mid-January.· US Group II light-grade export prices slide to deeper discount to heating oil, incentivizing refiners to cut output..Global base oils - week of July 17: Price outlook - arbitrage
· Global base oils values face growing pressure versus rising diesel and crude prices as outright prices hold steady or fall.· Europe’s Group I base oil values vs diesel fall more than $250/t in little more than a month to lowest since end-Feb 2023..· Europe’s Group II base oils values vs diesel fall less sharply on steadier outright prices and weaker US dollar vs euro.· Trend suggests Group I base oils face pressure from oversupply, incentivizes refiners to cut production.· Asia Group I prices fall to discount to diesel for first time since 2H Jan 2023; Group II prices barely maintain premium to diesel..· Asia Group I/II premium to diesel falls more than $250/t in past two months.· Trend suggests market faces oversupply that prevents refiners from raising prices.· Trend incentivizes refiners to cut production.· China’s domestic Group II light-grade price-premium to Shandong diesel prices falls to nine-month low..· Base oil premium to diesel falls despite recent imposition of consumption tax on industrial white oils.· Sliding base oil premium to diesel suggests market faces weak demand and surplus supply.· Trend likely to deter start-up of new refining capacity, incentivize other refiners to undergo or extend plant maintenance.· US Group II light-grade posted price premium to heating oil falls to lowest since mid-January.· US Group II light-grade export prices slide to deeper discount to heating oil, incentivizing refiners to cut output..Global base oils - week of July 17: Price outlook - arbitrage