· Global base oils prices slip relative to firmer feedstock/competing fuel prices.· Base oils margins in most markets remain at levels that point to balanced-to-tight supply-demand fundamentals, incentivizing refiners to maintain higher output..· FOB Asia base oils prices fall vs gasoil prices..· Group I/II heavy-grade values hold firm vs gasoil, cushioning impact of weaker light-grade price differentials.· Light-grade base oils premium to gasoil remains much higher than mid-Jan 2025 and similar to year-earlier levels.· Firm margins for light/heavy-grades combined point to still-tight market fundamentals, incentivizing refiners to raise or maintain high output..· China’s domestic Group I SN 400 base oils price holds firm vs Shandong diesel price..· Premium holds at highest since end-Nov 2024 after rebounding since H1 Jan 2025.· Premium rises more strongly than Group II N500 premium to diesel, coincides with plant maintenance work in China..· CFR India Group II N70 premium to Singapore gasoil extends fall, remains close to highest since end-Q3 2024..· Still-firm premium keeps arbitrage open to move more very-light grade base oils shipments to India.· Firm premium sustains incentive for overseas refiners to keep very-light grades in base oils pool rather than divert into diesel pool..· Europe’s Group I export price-premium to VGO falls less steeply than domestic Group I/II prices..· Europe’s Group I export price premium to VGO remains much higher than year-earlier levels.· Firm base oils values reflect tight supply-demand fundamentals for Group I export volumes.· Persistently-firm base oils price differentials point to limited ability to raise supply, combined with still-firm buying interest..· US Group II light-grade domestic price premium to VGO holds firm after rising in March 2025..· Firmer premium contrasts with Group II light-grade export price-premium that holds in narrow range since start of 2025.· Steady Group II export-price premium to VGO contrasts with surging export and domestic price premium this time a year earlier.· Steady Group II export price-premium points to market fundamentals that are less tight vs same time a year ago..Asia base oils demand outlook: Week of 31 March.Asia base oils supply outlook: Week of 31 March
· Global base oils prices slip relative to firmer feedstock/competing fuel prices.· Base oils margins in most markets remain at levels that point to balanced-to-tight supply-demand fundamentals, incentivizing refiners to maintain higher output..· FOB Asia base oils prices fall vs gasoil prices..· Group I/II heavy-grade values hold firm vs gasoil, cushioning impact of weaker light-grade price differentials.· Light-grade base oils premium to gasoil remains much higher than mid-Jan 2025 and similar to year-earlier levels.· Firm margins for light/heavy-grades combined point to still-tight market fundamentals, incentivizing refiners to raise or maintain high output..· China’s domestic Group I SN 400 base oils price holds firm vs Shandong diesel price..· Premium holds at highest since end-Nov 2024 after rebounding since H1 Jan 2025.· Premium rises more strongly than Group II N500 premium to diesel, coincides with plant maintenance work in China..· CFR India Group II N70 premium to Singapore gasoil extends fall, remains close to highest since end-Q3 2024..· Still-firm premium keeps arbitrage open to move more very-light grade base oils shipments to India.· Firm premium sustains incentive for overseas refiners to keep very-light grades in base oils pool rather than divert into diesel pool..· Europe’s Group I export price-premium to VGO falls less steeply than domestic Group I/II prices..· Europe’s Group I export price premium to VGO remains much higher than year-earlier levels.· Firm base oils values reflect tight supply-demand fundamentals for Group I export volumes.· Persistently-firm base oils price differentials point to limited ability to raise supply, combined with still-firm buying interest..· US Group II light-grade domestic price premium to VGO holds firm after rising in March 2025..· Firmer premium contrasts with Group II light-grade export price-premium that holds in narrow range since start of 2025.· Steady Group II export-price premium to VGO contrasts with surging export and domestic price premium this time a year earlier.· Steady Group II export price-premium points to market fundamentals that are less tight vs same time a year ago..Asia base oils demand outlook: Week of 31 March.Asia base oils supply outlook: Week of 31 March
