· Global base oils values stay unusually firm relative to feedstock/competing fuel prices, especially for the time of year.· Weaker diesel premium to crude oil contrasts with and magnifies strength of base oils margins.· Firm margins sustain incentive for refiners to maximize base oils output.· FOB Asia Group I/II price premium to Singapore gasoil prices holds firm even after edging lower following sustained rise since early July 2024..· Firm base oils values trend higher during Q3 2024, contrast with sliding values in Q3 2022 and Q3 2023.· Firm base oils values contrast with weaker gasoil premium to crude, magnifying strength of firm base oils values..· China’s domestic Group II light-grade base oils price premium to Shandong diesel price steadies, remains in narrow range since early June 2024..· Steady premium contrasts with slumping premium to much lower levels during Q3 2023.· Steady premium points to more balanced supply-demand fundamentals so far in Q3 2024 compared with same time last year..· CFR India Group II N70 premium to Singapore gasoil prices holds firm even as it edges down for first time since early July 2024..· Firm premium keeps arbitrage to India open, sustains incentive for refiners to produce more very-light grade base oils.· Firm N70 premium contrasts with discount to Singapore gasoil the same time a year earlier.· Dynamic points to tighter supply-demand fundamentals compared with year-earlier levels..· Europe’s Group I domestic price premium to VGO edges lower, remains close to highest in more than a year.· Europe’s Group I export price premium to VGO edges lower, holds close to highest since end-2022..· High base oils values point to tight supply-demand fundamentals at a time of year when market often sees build-up of surplus supply. · Europe Group III 4cSt (low) premium to VGO edges down, holds well above two-year low in early July 2024.· Europe Group III 4cSt (low) premium to VGO stays far down from unusually high levels in Q1 2023, stays well above levels before early 2021.· Still-firm premium relative to levels before 2021 could curb incentive for refiners to adjust production in response to slide in premium over past year..· Europe’s Group II light-grade price premium to VGO maintains unusually similar level to US Group II premium to VGO since end-June 2024..· US Group II light-grade premium to VGO gets support from tight supply-demand fundamentals during Atlantic hurricane season.· Europe’s Group II light-grade premium to VGO holds firm despite signs of healthy availability of supply..· US Group III 4cSt price premium to VGO extends fall to lowest since beginning of 2021..· Sliding 4cSt premium contrasts with firm Group II N100 premium, narrowing sharply the spread between the two grades..Asia base oils demand outlook: Week of 19 Aug.Asia base oils supply outlook: Week of 19 Aug
· Global base oils values stay unusually firm relative to feedstock/competing fuel prices, especially for the time of year.· Weaker diesel premium to crude oil contrasts with and magnifies strength of base oils margins.· Firm margins sustain incentive for refiners to maximize base oils output.· FOB Asia Group I/II price premium to Singapore gasoil prices holds firm even after edging lower following sustained rise since early July 2024..· Firm base oils values trend higher during Q3 2024, contrast with sliding values in Q3 2022 and Q3 2023.· Firm base oils values contrast with weaker gasoil premium to crude, magnifying strength of firm base oils values..· China’s domestic Group II light-grade base oils price premium to Shandong diesel price steadies, remains in narrow range since early June 2024..· Steady premium contrasts with slumping premium to much lower levels during Q3 2023.· Steady premium points to more balanced supply-demand fundamentals so far in Q3 2024 compared with same time last year..· CFR India Group II N70 premium to Singapore gasoil prices holds firm even as it edges down for first time since early July 2024..· Firm premium keeps arbitrage to India open, sustains incentive for refiners to produce more very-light grade base oils.· Firm N70 premium contrasts with discount to Singapore gasoil the same time a year earlier.· Dynamic points to tighter supply-demand fundamentals compared with year-earlier levels..· Europe’s Group I domestic price premium to VGO edges lower, remains close to highest in more than a year.· Europe’s Group I export price premium to VGO edges lower, holds close to highest since end-2022..· High base oils values point to tight supply-demand fundamentals at a time of year when market often sees build-up of surplus supply. · Europe Group III 4cSt (low) premium to VGO edges down, holds well above two-year low in early July 2024.· Europe Group III 4cSt (low) premium to VGO stays far down from unusually high levels in Q1 2023, stays well above levels before early 2021.· Still-firm premium relative to levels before 2021 could curb incentive for refiners to adjust production in response to slide in premium over past year..· Europe’s Group II light-grade price premium to VGO maintains unusually similar level to US Group II premium to VGO since end-June 2024..· US Group II light-grade premium to VGO gets support from tight supply-demand fundamentals during Atlantic hurricane season.· Europe’s Group II light-grade premium to VGO holds firm despite signs of healthy availability of supply..· US Group III 4cSt price premium to VGO extends fall to lowest since beginning of 2021..· Sliding 4cSt premium contrasts with firm Group II N100 premium, narrowing sharply the spread between the two grades..Asia base oils demand outlook: Week of 19 Aug.Asia base oils supply outlook: Week of 19 Aug
