· Europe’s Group I domestic base oils prices maintain steep premium to other markets like US and Asia..· Wide premium keeps arbitrage to Europe open, incentivizes overseas suppliers to move more shipments to Europe..· Open arbitrage reflects Europe’s firm Group I demand and tight supply fundamentals, sustaining need for higher prices to attract additional shipments.· Open arbitrage to Europe tightens availability of Group I supply for other markets..· Europe’s higher prices and tight fundamentals also incentivize regional suppliers like Greece and Italy to keep more exports within Europe.· The moves cut further the volume of Group I base oils available for markets outside the region..· Europe’s Group I export base oils prices maintain steep premium to other markets like Middle East and India, reflecting the tighter availability for markets outside Europe..· Price and supply dynamics incentivize overseas buyers to seek other sources of supply and supplier.· Price and supply dynamics incentivize overseas suppliers to target those buyers with Group I or premium-grade base oils..· Surge in Russia’s base oils shipments to markets like Turkey and India reflect that dynamic..· Sustained rise in Asia’s base oils exports to Middle East for a second year point to the region's increasing consumption of premium-grade base oils.· Ready availability of supply and narrowing gap between Group I and Group II prices boost attraction of consuming more premium-grade base oils in markets like Middle East and India..· Dynamic suggests Europe’s sustained demand for Group I base oils could speed up moves by buyers in other regions to switch to using more premium-grade base oils.· Such an outcome, of overseas blenders using larger volumes of lower-priced premium-grade base oils, could complicate the competitiveness of European blenders using large volumes of higher-priced Group I base oils..Global base oils margins outlook: Week of 19 Aug.Asia base oils demand outlook: Week of 19 Aug.Asia base oils supply outlook: Week of 19 Aug
· Europe’s Group I domestic base oils prices maintain steep premium to other markets like US and Asia..· Wide premium keeps arbitrage to Europe open, incentivizes overseas suppliers to move more shipments to Europe..· Open arbitrage reflects Europe’s firm Group I demand and tight supply fundamentals, sustaining need for higher prices to attract additional shipments.· Open arbitrage to Europe tightens availability of Group I supply for other markets..· Europe’s higher prices and tight fundamentals also incentivize regional suppliers like Greece and Italy to keep more exports within Europe.· The moves cut further the volume of Group I base oils available for markets outside the region..· Europe’s Group I export base oils prices maintain steep premium to other markets like Middle East and India, reflecting the tighter availability for markets outside Europe..· Price and supply dynamics incentivize overseas buyers to seek other sources of supply and supplier.· Price and supply dynamics incentivize overseas suppliers to target those buyers with Group I or premium-grade base oils..· Surge in Russia’s base oils shipments to markets like Turkey and India reflect that dynamic..· Sustained rise in Asia’s base oils exports to Middle East for a second year point to the region's increasing consumption of premium-grade base oils.· Ready availability of supply and narrowing gap between Group I and Group II prices boost attraction of consuming more premium-grade base oils in markets like Middle East and India..· Dynamic suggests Europe’s sustained demand for Group I base oils could speed up moves by buyers in other regions to switch to using more premium-grade base oils.· Such an outcome, of overseas blenders using larger volumes of lower-priced premium-grade base oils, could complicate the competitiveness of European blenders using large volumes of higher-priced Group I base oils..Global base oils margins outlook: Week of 19 Aug.Asia base oils demand outlook: Week of 19 Aug.Asia base oils supply outlook: Week of 19 Aug
