· Global base oils prices mostly improve vs feedstock/competing fuel prices, face ongoing pressure from high crude oil prices.· FOB NE Asia Group II base oils price premium to regional gasoil prices holds firm, especially for heavy grades..· Group II premium stays well below year-earlier levels, curbing incentive for refiners to boost output.· FOB Asia Group I base oils premium to gasoil hold firm, mostly in narrow range since early Nov 2023.· Firm premium incentivizes refiners to maintain steady-to-high output levels despite completion of plant maintenance work in southeast Asia..· China’s domestic Group II light-grade premium to Shandong diesel prices edges lower..· Premium holds in narrow range so far this year, contrasts with surge in premium in April 2023.· Lower premium curbs incentive for domestic refiners to boost output..· CFR India N70 premium to Singapore gasoil prices holds steady in narrow range since early Dec 2023..· Steady premium provides sufficient incentive for Asia’s refiners to offer supplies for export rather than redirect them back into diesel pool..· Europe’s Group I domestic price premium to VGO improves, outpacing more muted rise in Group II premium to VGO.· Group II light/heavy-grade premium to VGO holds close to lowest in almost six months and well below year-earlier levels..· Lower premium curbs incentive for sharp rise in regional Group II base oils output.· Europe’s Group III 4cSt (low) price premium to VGO holds close to lowest since Q2 2022..· US Group II export price premium to heating oil/VGO extends rebound since mid-March 2024.· US Group II heavy-grade export price premium to VGO stays unusually weak even after recent recovery.· US Group II heavy-grade domestic price premium to VGO continues to trend lower, slipping to lowest since Q2 2022..· Lower Group II heavy-grade premium erodes counterbalance vs weak domestic light-grade premium to VGO.· US Group III 4cSt premium to VGO extends slide to lowest since Q2 2021.· US Group II light-grade posted price premium to Group II domestic spot prices widens even more.· Size of disconnect between posted prices and domestic spot prices is unusually large..Global base oils demand outlook: Week of April 8
· Global base oils prices mostly improve vs feedstock/competing fuel prices, face ongoing pressure from high crude oil prices.· FOB NE Asia Group II base oils price premium to regional gasoil prices holds firm, especially for heavy grades..· Group II premium stays well below year-earlier levels, curbing incentive for refiners to boost output.· FOB Asia Group I base oils premium to gasoil hold firm, mostly in narrow range since early Nov 2023.· Firm premium incentivizes refiners to maintain steady-to-high output levels despite completion of plant maintenance work in southeast Asia..· China’s domestic Group II light-grade premium to Shandong diesel prices edges lower..· Premium holds in narrow range so far this year, contrasts with surge in premium in April 2023.· Lower premium curbs incentive for domestic refiners to boost output..· CFR India N70 premium to Singapore gasoil prices holds steady in narrow range since early Dec 2023..· Steady premium provides sufficient incentive for Asia’s refiners to offer supplies for export rather than redirect them back into diesel pool..· Europe’s Group I domestic price premium to VGO improves, outpacing more muted rise in Group II premium to VGO.· Group II light/heavy-grade premium to VGO holds close to lowest in almost six months and well below year-earlier levels..· Lower premium curbs incentive for sharp rise in regional Group II base oils output.· Europe’s Group III 4cSt (low) price premium to VGO holds close to lowest since Q2 2022..· US Group II export price premium to heating oil/VGO extends rebound since mid-March 2024.· US Group II heavy-grade export price premium to VGO stays unusually weak even after recent recovery.· US Group II heavy-grade domestic price premium to VGO continues to trend lower, slipping to lowest since Q2 2022..· Lower Group II heavy-grade premium erodes counterbalance vs weak domestic light-grade premium to VGO.· US Group III 4cSt premium to VGO extends slide to lowest since Q2 2021.· US Group II light-grade posted price premium to Group II domestic spot prices widens even more.· Size of disconnect between posted prices and domestic spot prices is unusually large..Global base oils demand outlook: Week of April 8
