· Global base oils prices turn more mixed relative to feedstock/competing fuel prices.· Light-grade margins face more pressure in Asia than in other markets.· Dynamic boosts incentive for adjustments in output in that market, points to more balanced fundamentals in other markets.· Heavy-grade margins remain at more elevated levels, especially in Europe.· Dynamic points to firm supply-demand fundamentals, boosting incentive for refiners to boost supply of the grade, especially in Europe..· FOB Asia base oils cargo premium to Singapore gasoil holds steadier..· Group II heavy-grade premium to gasoil stays much lower than in Q2 2025, closer to levels in H2 2024.· Even at lower level, heavy-grade premium stays high and at level that incentivizes refiners to maintain steady output.· Group II light-grade premium to gasoil stays much lower than in Q2 2025 and lower than in most of H2 2024.· Lower premium could incentivize refiners to adjust output levels..· China’s domestic Group II N150 premium to Shandong diesel price stays low..· Weak base oils premium curbs incentive for domestic refiners to raise or maintain output levels.· Any incentive to maintain or trim output coincides with less feasible arbitrage to move more supplies to China from regional refiners.· Weakening price signals for domestic or overseas refiners point to slack demand..· CFR India Group II N70 premium to Singapore gasoil holds steadier..· Premium holds at level that sustains attraction of moving more supplies to India.· Premium remains at much lower level than in Q2 2025, incentivizing refiners to consider alternative options.· N70 premium at lower levels than in Q2 2025 contrasts with increasingly high diesel price relative to crude.· Diverging price dynamics could incentivize refiners to prioritise diesel market..· Europe’s Group II base oils prices hold firm vs vacuum gasoil (VGO), especially for heavy grades..· Firm price-premium coincides with ongoing Group II price-strength relative to other grades and other regions.· Dynamic points to tight supply-demand fundamentals, incentivizing pick-up in supplies in or to Europe..· US Group II light-grade export price-premium to VGO extends fall..· Sliding premium contrasts with higher base oil premium in Q2 2025 and surging premium in Q3 2024.· Sliding premium contrasts with steadier domestic light-grade premium to VGO.· Relative strength/stability of domestic Group II light-grade premium could incentivize refiners to maintain steady output and to clear surplus volumes in overseas markets..Asia base oils demand outlook: Week of 28 July.Asia base oils supply outlook: Week of 28 July.Base Oil News stories and analyses also available on the ICIS platform
