· Global base oils prices extend rise vs feedstock/competing fuel prices to levels that increase further the incentive for refiners to raise output.· Base oils values extend rise at a time of year when they typically face pressure from weak supply-demand fundamentals.· Rising base oils values suggests supply-demand fundamentals are firmer than usual, especially for the time of year.· FOB Asia base oils prices extend rise vs Singapore gasoil prices, especially for Group II heavy grades..· Rising Group I/II base oils price premium to gasoil contrasts with sliding slumping premium throughout Q3 2023.· Rising premium sustains incentive for refiners to maintain or raise base oils output, at a time of year when demand typically faces a seasonal slowdown..· China’s domestic Group II light-grade premium to Shandong diesel prices rises to highest in more than two months..· Domestic Group II heavy-grade premium to Shandong diesel prices rises to highest since late-2021.· Domestic Group I light/heavy-grade price premium to diesel prices also extend rise.· Rising base oils premiums incentivize refiners to raise base oils output..· CFR India Group II N70 premium to Singapore gasoil prices extends rise to highest since H1 June 2024..· Rebounding N70 premium facilitates arbitrage to India, incentivizes Asia refiners to offer more light-grade base oils rather than divert the supplies back into diesel pool..· Europe’s Group I domestic/export base oils prices extend rise vs VGO to highest since early-2023..· Rising premium contrasts with fall in Group I premium to VGO in Q3 2023.· Rising premium incentivizes refiners to raise base oils output.· Europe’s Group II/III base oils prices extend rebound since early-July 2024, lag pace of rise in Group I values..· US Group II light-grade price premium to VGO continues to rise faster than rise in Europe Group II price premium, extending a trend that began in early-March 2024..· US Group II export light-grade price premium to VGO extends rise to highest since Q4 2022.· US Group II domestic light-grade price premium to VGO extends rise to highest since Q2 2023..· Rising light-grade premium points to ongoing supply-tightness, adds to incentive for refiners to maximise output of the grade..Asia base oils demand outlook: Week of 5 Aug.Asia base oils supply outlook: Week of 5 Aug
· Global base oils prices extend rise vs feedstock/competing fuel prices to levels that increase further the incentive for refiners to raise output.· Base oils values extend rise at a time of year when they typically face pressure from weak supply-demand fundamentals.· Rising base oils values suggests supply-demand fundamentals are firmer than usual, especially for the time of year.· FOB Asia base oils prices extend rise vs Singapore gasoil prices, especially for Group II heavy grades..· Rising Group I/II base oils price premium to gasoil contrasts with sliding slumping premium throughout Q3 2023.· Rising premium sustains incentive for refiners to maintain or raise base oils output, at a time of year when demand typically faces a seasonal slowdown..· China’s domestic Group II light-grade premium to Shandong diesel prices rises to highest in more than two months..· Domestic Group II heavy-grade premium to Shandong diesel prices rises to highest since late-2021.· Domestic Group I light/heavy-grade price premium to diesel prices also extend rise.· Rising base oils premiums incentivize refiners to raise base oils output..· CFR India Group II N70 premium to Singapore gasoil prices extends rise to highest since H1 June 2024..· Rebounding N70 premium facilitates arbitrage to India, incentivizes Asia refiners to offer more light-grade base oils rather than divert the supplies back into diesel pool..· Europe’s Group I domestic/export base oils prices extend rise vs VGO to highest since early-2023..· Rising premium contrasts with fall in Group I premium to VGO in Q3 2023.· Rising premium incentivizes refiners to raise base oils output.· Europe’s Group II/III base oils prices extend rebound since early-July 2024, lag pace of rise in Group I values..· US Group II light-grade price premium to VGO continues to rise faster than rise in Europe Group II price premium, extending a trend that began in early-March 2024..· US Group II export light-grade price premium to VGO extends rise to highest since Q4 2022.· US Group II domestic light-grade price premium to VGO extends rise to highest since Q2 2023..· Rising light-grade premium points to ongoing supply-tightness, adds to incentive for refiners to maximise output of the grade..Asia base oils demand outlook: Week of 5 Aug.Asia base oils supply outlook: Week of 5 Aug
