· Europe’s Group II prices maintain steep premium to US/Asia prices, maintaining attraction of moving arbitrage shipments to Europe.· Europe’s steep Group II premium for extended period suggests supply remains structurally tight, sustaining need for arbitrage shipments.· Europe’s Group I base oils premium to Asia prices widens further.· Trend keeps shut arbitrage from Europe to markets like Mideast Gulf/India.· Trend sustains attraction of moving Asia Group I shipments to Mideast Gulf/India and to Europe.· Europe unapproved Group III base oils discount to Asia prices stays at widest in years – curbing attraction of moving more such supplies to Europe.· Europe approved Group III base oils premium to Asia prices stays wide.· Gap between US and Europe Group III prices stays narrow for third month.· Asia Group II discount to domestic Chinese prices holds in narrow range that keeps arbitrage marginal.· Asia Group II price differential to domestic Chinese prices steadies in recent weeks after falling sharply in June and July.· Asia Group I bright stock discount to domestic Chinese prices holds in narrow range over past month that keeps arbitrage marginal.· Asia bright stock differential to domestic Chinese prices had been much narrower in May and June, keeping arbitrage shut.· Any pick-up in arbitrage shipments from Asia to China would follow slowdown in such flows in recent months, help remove more supplies from regional market..Global base oils - week of Aug 21: Price outlook - margins
· Europe’s Group II prices maintain steep premium to US/Asia prices, maintaining attraction of moving arbitrage shipments to Europe.· Europe’s steep Group II premium for extended period suggests supply remains structurally tight, sustaining need for arbitrage shipments.· Europe’s Group I base oils premium to Asia prices widens further.· Trend keeps shut arbitrage from Europe to markets like Mideast Gulf/India.· Trend sustains attraction of moving Asia Group I shipments to Mideast Gulf/India and to Europe.· Europe unapproved Group III base oils discount to Asia prices stays at widest in years – curbing attraction of moving more such supplies to Europe.· Europe approved Group III base oils premium to Asia prices stays wide.· Gap between US and Europe Group III prices stays narrow for third month.· Asia Group II discount to domestic Chinese prices holds in narrow range that keeps arbitrage marginal.· Asia Group II price differential to domestic Chinese prices steadies in recent weeks after falling sharply in June and July.· Asia Group I bright stock discount to domestic Chinese prices holds in narrow range over past month that keeps arbitrage marginal.· Asia bright stock differential to domestic Chinese prices had been much narrower in May and June, keeping arbitrage shut.· Any pick-up in arbitrage shipments from Asia to China would follow slowdown in such flows in recent months, help remove more supplies from regional market..Global base oils - week of Aug 21: Price outlook - margins
