· Global base oils prices mostly hold firm vs feedstock/gasoil prices.· Firm margins in Asia and Europe point to still-tight supply-demand fundamentals, incentivizing refiners to maintain high output levels.· Weaker margins in US point to diverging fundamentals compared with other regions..· FOB Asia base oils values hold at elevated levels vs Singapore gasoil, especially for heavy grades..· FOB Asia Group I price-premium to gasoil stays firm, well above year-earlier levels for all grades.· Firm Group I margins contrast with Group II premiums to gasoil that remain firm but hold closer to lower end of recent range.· Firmer Group I margins add to signs of diverging supply-demand fundamentals for Group I and Group II base oils..· China’s domestic Group II N150 premium to Shandong diesel prices extends fall to lowest in a month..· Lower premium coincides with dip in base oils premium to diesel the same time a year ago.· Lower premium coincides with completion of key plant maintenance work in China.· Lower premium points to more mixed signals over outlook for prices and supply-demand fundamentals..· CFR India Group II N70 premium to Singapore gasoil edges up, holds at higher end of price-range over past two years..· High premium points to firm supply-demand factors supporting sustained strength.· Premium stays high even after completion of Group II plant maintenance in South Korea.· Premium stays high even ahead of typical seasonal slowdown in India’s lube consumption during monsoon season.· High premium suggests that other factors are supporting price-strength that sustains attraction of moving more very-light grade base oils to India..· Europe’s Group III 4cSt (low) price premium to vacuum gasoil rises to six-month high..· Group III 4cSt premium to VGO rises more strongly than Group I and Group II base oils premium and more strongly than Group III prices in other regions.· Relative strength of Europe Group III 4cSt price premium points to firmer supply-demand fundamentals compared with other grades and other regions..· US Group II heavy-grade export price premium to VGO falls less sharply than heavy-grade domestic premium to VGO, after both grades’ margins peaked at six-month high in early-May 2025..· More rangebound export price-premium points to firmer supply-demand fundamentals for export volumes than for supplies in the domestic market.· Dynamic points to still-firm overseas demand and more mute domestic demand for Group II heavy grades. .Asia base oils demand outlook: Week of 26 May.Asia base oils supply outlook: Week of 26 May
