· Global base oils price-premium to crude and diesel prices extends slide.· Lack of upward support for outright base oils prices points to sufficient supply to meet demand, adds to incentive for refiners to cut base oils output.· If supply is less plentiful than expected, or demand is set to improve in coming months, price incentive for refiners to cut output could leave supply even tighter than expected.· Europe’s Group I base oils premium to gasoil falls by more than $300/t in little more than a month to lowest since January.· Europe’s Group II base oils premium to gasoil falls less steeply, by more than $150/t since late June, to lowest since 2H March..· Asia Group I/II prices fall to steep discount to gasoil prices, from firm premium as recently as mid-May; discount grows to widest since January..· China’s domestic Group II light-grade base oils premium to Shandong diesel prices falls by more than $120/t in little more than a month to lowest since Oct 2022..· Sliding base oils premium to diesel coincides with China’s rising diesel premium to crude.· Sliding base oils premium to diesel coincides with higher costs after imposition of consumption tax on industrial white oils.· Chinese refiners show signs of cutting output/extending shutdowns in response to weaker margins.· US Group II light-grade posted price premium to heating oil falls to lowest since Oct 2022.· US export Group II light-grade price discount to heating oil widens further, adding to incentive for refiners to cut output or redirect supplies back into diesel pool..Global base oils - week of July 24: Demand outlook
· Global base oils price-premium to crude and diesel prices extends slide.· Lack of upward support for outright base oils prices points to sufficient supply to meet demand, adds to incentive for refiners to cut base oils output.· If supply is less plentiful than expected, or demand is set to improve in coming months, price incentive for refiners to cut output could leave supply even tighter than expected.· Europe’s Group I base oils premium to gasoil falls by more than $300/t in little more than a month to lowest since January.· Europe’s Group II base oils premium to gasoil falls less steeply, by more than $150/t since late June, to lowest since 2H March..· Asia Group I/II prices fall to steep discount to gasoil prices, from firm premium as recently as mid-May; discount grows to widest since January..· China’s domestic Group II light-grade base oils premium to Shandong diesel prices falls by more than $120/t in little more than a month to lowest since Oct 2022..· Sliding base oils premium to diesel coincides with China’s rising diesel premium to crude.· Sliding base oils premium to diesel coincides with higher costs after imposition of consumption tax on industrial white oils.· Chinese refiners show signs of cutting output/extending shutdowns in response to weaker margins.· US Group II light-grade posted price premium to heating oil falls to lowest since Oct 2022.· US export Group II light-grade price discount to heating oil widens further, adding to incentive for refiners to cut output or redirect supplies back into diesel pool..Global base oils - week of July 24: Demand outlook
