· Europe’s Group II base oils prices rise in recent weeks vs Europe Group I prices and vs Asia/US Group II prices..· Europe’s Group II base oils price strength vs Group I and vs other regions points to tighter supply and stronger demand fundamentals..· Europe’s Group II base oils price differential improves even as supply extends recovery vs first four months of 2024..· Recent price strength, despite higher supply, suggests demand may be the key differentiator..· Europe’s tighter Group II supply fundamentals in early 2024 incentivized blenders to trim Group II requirements and boost consumption of other grades like Group I base oils.· Stronger demand for Group I base oils supported prices that rose strongly in Q2 2024 vs Group II base oils and vs Group I prices in other regions..· Europe’s higher Group I prices support steadier supply in H1 2024, helping to cover stronger demand..· Recovery in Europe's Group II supply raises prospect of drop in demand for Group I base oils from blenders that turned to the grade as an alternative to Group II earlier in the year.· Drop in requirements for Group I base oils would also curb need for additional Group I supplies from other markets.· Europe’s Group I base oils prices trend lower vs Group II base oils and vs prices in other regions in recent weeks, pointing to weaker supply-demand fundamentals compared with H1 2024..· But volatility of Group II base oils supply this year highlights Europe’s ongoing reliance on a single regional source for most of its supplies of the premium-grade base oils.· Volatility of Group II base oils supply contrasts with Europe’s steady-to-firm Group I base oils supply, despite recent plant shutdowns and closures in the region.· Ongoing volatility of Group II base oils supply and relative stability of Europe’s Group I base oils supply sustains attraction for blenders to maintain option of using Group I base oils.· That dynamic is likely to provide underlying demand and price-support for Group I base oils.· That underlying demand is likely to continue until blenders have more stable supply and more regional supply options for premium-grade base oils..Global base oils margins outlook: Week of 23 Sept.Asia base oils demand outlook: Week of 23 Sept.Asia base oils supply outlook: Week of 23 Sept
· Europe’s Group II base oils prices rise in recent weeks vs Europe Group I prices and vs Asia/US Group II prices..· Europe’s Group II base oils price strength vs Group I and vs other regions points to tighter supply and stronger demand fundamentals..· Europe’s Group II base oils price differential improves even as supply extends recovery vs first four months of 2024..· Recent price strength, despite higher supply, suggests demand may be the key differentiator..· Europe’s tighter Group II supply fundamentals in early 2024 incentivized blenders to trim Group II requirements and boost consumption of other grades like Group I base oils.· Stronger demand for Group I base oils supported prices that rose strongly in Q2 2024 vs Group II base oils and vs Group I prices in other regions..· Europe’s higher Group I prices support steadier supply in H1 2024, helping to cover stronger demand..· Recovery in Europe's Group II supply raises prospect of drop in demand for Group I base oils from blenders that turned to the grade as an alternative to Group II earlier in the year.· Drop in requirements for Group I base oils would also curb need for additional Group I supplies from other markets.· Europe’s Group I base oils prices trend lower vs Group II base oils and vs prices in other regions in recent weeks, pointing to weaker supply-demand fundamentals compared with H1 2024..· But volatility of Group II base oils supply this year highlights Europe’s ongoing reliance on a single regional source for most of its supplies of the premium-grade base oils.· Volatility of Group II base oils supply contrasts with Europe’s steady-to-firm Group I base oils supply, despite recent plant shutdowns and closures in the region.· Ongoing volatility of Group II base oils supply and relative stability of Europe’s Group I base oils supply sustains attraction for blenders to maintain option of using Group I base oils.· That dynamic is likely to provide underlying demand and price-support for Group I base oils.· That underlying demand is likely to continue until blenders have more stable supply and more regional supply options for premium-grade base oils..Global base oils margins outlook: Week of 23 Sept.Asia base oils demand outlook: Week of 23 Sept.Asia base oils supply outlook: Week of 23 Sept
