· Europe’s Group I base oil premium to diesel rises to highest in more than eight months.· Europe’s Group II base oil premium to diesel rises to highest in more than four months..· Group I premium rises in response to firm outright prices and lower diesel prices.· Rising margins suggest demand outweighs supply, incentivize refiners to produce more base oils.· Sustainability of margins at current levels would confirm whether demand outweighs supply.· Margins may face pressure if demand matches or lags supply.· Asia-Pacific Group I/II base oils premium to diesel rises to highest since early August..· Asia-Pacific surplus supply rose sharply at that time in Q3 2023.· Higher Asia base oils premium to diesel coincides with round of plant maintenance work, suggests supply starting to lag demand.· China’s domestic Group II light-grade premium to diesel holds firm close to highest since November 2022..· Firm base oil premium points to stronger domestic demand, incentivizes refiners to increase output.· India’s domestic retail diesel premium to regional light-grade base oils prices holds steady – at levels that have failed to trigger rise in demand for overseas supplies..· US posted price premium to heating oil holds firm despite recent cut in outright prices..Asia base oils - week of April 24: Supply outlook
· Europe’s Group I base oil premium to diesel rises to highest in more than eight months.· Europe’s Group II base oil premium to diesel rises to highest in more than four months..· Group I premium rises in response to firm outright prices and lower diesel prices.· Rising margins suggest demand outweighs supply, incentivize refiners to produce more base oils.· Sustainability of margins at current levels would confirm whether demand outweighs supply.· Margins may face pressure if demand matches or lags supply.· Asia-Pacific Group I/II base oils premium to diesel rises to highest since early August..· Asia-Pacific surplus supply rose sharply at that time in Q3 2023.· Higher Asia base oils premium to diesel coincides with round of plant maintenance work, suggests supply starting to lag demand.· China’s domestic Group II light-grade premium to diesel holds firm close to highest since November 2022..· Firm base oil premium points to stronger domestic demand, incentivizes refiners to increase output.· India’s domestic retail diesel premium to regional light-grade base oils prices holds steady – at levels that have failed to trigger rise in demand for overseas supplies..· US posted price premium to heating oil holds firm despite recent cut in outright prices..Asia base oils - week of April 24: Supply outlook
