· Europe’s Group II prices maintain steep premium to Asia/US prices – sustaining attraction of moving more arbitrage shipments to the region.· Europe’s Group I base oils premium to Asia prices widens further, keeping open arbitrage to move more arbitrage shipments to Europe.· Europe’s wide Group I base oils premium to Asia prices keeps shut arbitrage from Europe to outlets like Mideast Gulf and India.· Europe’s Group I base oils premium to Asia prices stays wide even at time of weaker demand fundamentals in Europe.· Europe’s wide Group I base oils premium to Asia prices suggests supply stays sufficiently balanced to avoid need for open arbitrage.· Europe’s unapproved/partially approved Group III base oils price discount to Asia prices widens further – making less attractive any arbitrage shipments to Europe.· Europe’s unapproved Group III price discount to Asia prices instead boosts attraction of moving more supplies to Asia.· Asia Group I bright stock / Group II base oils price discount to domestic Chinese prices narrows slightly, stays wider than during Q2 2023.· Wider discount makes arbitrage shipments from Asia to China more feasible, while domestic prices continue to deter domestic refiners from boosting base oils output.· Prospect of tighter supply from China's domestic refiners and competitive prices for overseas supplies could support firmer demand for regional supplies.· Asia Group I bright stock prices maintain steep discount to US prices, sustaining attraction of moving flexibag shipments to Latin America..Global base oils - week of Aug 14: Price outlook - margins
· Europe’s Group II prices maintain steep premium to Asia/US prices – sustaining attraction of moving more arbitrage shipments to the region.· Europe’s Group I base oils premium to Asia prices widens further, keeping open arbitrage to move more arbitrage shipments to Europe.· Europe’s wide Group I base oils premium to Asia prices keeps shut arbitrage from Europe to outlets like Mideast Gulf and India.· Europe’s Group I base oils premium to Asia prices stays wide even at time of weaker demand fundamentals in Europe.· Europe’s wide Group I base oils premium to Asia prices suggests supply stays sufficiently balanced to avoid need for open arbitrage.· Europe’s unapproved/partially approved Group III base oils price discount to Asia prices widens further – making less attractive any arbitrage shipments to Europe.· Europe’s unapproved Group III price discount to Asia prices instead boosts attraction of moving more supplies to Asia.· Asia Group I bright stock / Group II base oils price discount to domestic Chinese prices narrows slightly, stays wider than during Q2 2023.· Wider discount makes arbitrage shipments from Asia to China more feasible, while domestic prices continue to deter domestic refiners from boosting base oils output.· Prospect of tighter supply from China's domestic refiners and competitive prices for overseas supplies could support firmer demand for regional supplies.· Asia Group I bright stock prices maintain steep discount to US prices, sustaining attraction of moving flexibag shipments to Latin America..Global base oils - week of Aug 14: Price outlook - margins