· Global base oils values extend fall versus feedstock/competing fuel prices, especially in Asia.· Even with recent correction, base oils margins hold at levels that sustain incentive for refiners to maintain firm output levels.· FOB Asia base oils prices extend sharp slide vs feedstock/competing fuel prices amid lower outright prices, higher gasoil prices.· FOB NE Asia Group II price premium to Singapore gasoil prices falls to lowest in more than two months..· Price premium remains relatively firm, but is starting to mirror similar slide in Group II price premium in Q2-Q3 2023, that only bottomed out in Aug 2023.· FOB Asia Group I premium to gasoil holds relatively firm even after recent slide, and also starts to mirror similar trend the same time a year ago..· China’s domestic Group II N150 base oils price premium to Shandong diesel prices edges up, stays in narrow range since end-2023..· Steady price premium contrasts with sliding FOB Asia base oils price premium to gasoil prices.· Steadier price premium could point to more balanced fundamentals compared with regional market..· CFR India Group II N70 premium to Singapore gasoil prices extends sharp slide for second week to lowest since H2 Feb 2024..· Sliding premium starts to mirror similar trend in Q2-Q3 2023, when differential flipped to discount to gasoil.· Speed of fall in N70 premium to gasoil could prompt refiners to consider adjusting output levels of very-light grade base oils..· Europe’s Group I light-/heavy-neutrals base oils price premium to VGO falls to one-month low, lags the steeper fall in Group II/III price premium to VGO since early June 2024..· Still-firm Group I price premium, and smaller drop in premium vs Group II/III base oils, points to ongoing strength of Group I supply-demand fundamentals..· US Group II base oils values stay high vs VGO/heating oil prices even as they slip to lowest in a month..· Firm premium sustains incentive for refiners to maintain or raise base oils output.· Firm premium contrasts with US Group III 4cSt whose premium to VGO slips close to lowest since early 2021..Asia base oils demand outlook: Week of 24 June.Asia base oils supply outlook: Week of 24 June
· Global base oils values extend fall versus feedstock/competing fuel prices, especially in Asia.· Even with recent correction, base oils margins hold at levels that sustain incentive for refiners to maintain firm output levels.· FOB Asia base oils prices extend sharp slide vs feedstock/competing fuel prices amid lower outright prices, higher gasoil prices.· FOB NE Asia Group II price premium to Singapore gasoil prices falls to lowest in more than two months..· Price premium remains relatively firm, but is starting to mirror similar slide in Group II price premium in Q2-Q3 2023, that only bottomed out in Aug 2023.· FOB Asia Group I premium to gasoil holds relatively firm even after recent slide, and also starts to mirror similar trend the same time a year ago..· China’s domestic Group II N150 base oils price premium to Shandong diesel prices edges up, stays in narrow range since end-2023..· Steady price premium contrasts with sliding FOB Asia base oils price premium to gasoil prices.· Steadier price premium could point to more balanced fundamentals compared with regional market..· CFR India Group II N70 premium to Singapore gasoil prices extends sharp slide for second week to lowest since H2 Feb 2024..· Sliding premium starts to mirror similar trend in Q2-Q3 2023, when differential flipped to discount to gasoil.· Speed of fall in N70 premium to gasoil could prompt refiners to consider adjusting output levels of very-light grade base oils..· Europe’s Group I light-/heavy-neutrals base oils price premium to VGO falls to one-month low, lags the steeper fall in Group II/III price premium to VGO since early June 2024..· Still-firm Group I price premium, and smaller drop in premium vs Group II/III base oils, points to ongoing strength of Group I supply-demand fundamentals..· US Group II base oils values stay high vs VGO/heating oil prices even as they slip to lowest in a month..· Firm premium sustains incentive for refiners to maintain or raise base oils output.· Firm premium contrasts with US Group III 4cSt whose premium to VGO slips close to lowest since early 2021..Asia base oils demand outlook: Week of 24 June.Asia base oils supply outlook: Week of 24 June