· US Group II price discount to European prices stays wider in April, facilitating shipments to Europe.· Asia Group II discount to US prices stays narrow for light grades, wide for heavy grades, keeping open arbitrage to move heavy grades to Americas market.· Asia Group II light-grade discount to European prices stays wide, heavy-grade discount stays even wider.· Wide discount facilitates arbitrage from Asia to Europe, as well as neighbouring markets like Africa.· Asia’s Group I price discount to European prices widens, especially for bright stock.· Trend facilitates arbitrage from Asia to India/Mideast Gulf, complicates arbitrage shipments of European base oils unless prices are at steep discount.· Asia Group I light-grade discount to domestic Chinese prices widens, making arbitrage to China more feasible.· Open arbitrage contrasts with steady flow of Group I light-grades from China to markets like Singapore and India.· Asia Group I bright stock discount to domestic Chinese prices at widest in more than two months, but still narrower than in late-2022/early 2023.· Discount likely to make challenging any arbitrage shipments to China unless fob Asia bright stock prices fall further or domestic Chinese prices rise.· Asia Group II light-grade discount to domestic Chinese prices holds in narrow range, keeping arbitrage marginal.· Steady Asia cargo discount to domestic Chinese prices suggests China’s supply remains sufficient.· Marginal arbitrage to China incentivizes Asia producers to target other markets. .Global base oils – week of April 24: Price outlook – margins
· US Group II price discount to European prices stays wider in April, facilitating shipments to Europe.· Asia Group II discount to US prices stays narrow for light grades, wide for heavy grades, keeping open arbitrage to move heavy grades to Americas market.· Asia Group II light-grade discount to European prices stays wide, heavy-grade discount stays even wider.· Wide discount facilitates arbitrage from Asia to Europe, as well as neighbouring markets like Africa.· Asia’s Group I price discount to European prices widens, especially for bright stock.· Trend facilitates arbitrage from Asia to India/Mideast Gulf, complicates arbitrage shipments of European base oils unless prices are at steep discount.· Asia Group I light-grade discount to domestic Chinese prices widens, making arbitrage to China more feasible.· Open arbitrage contrasts with steady flow of Group I light-grades from China to markets like Singapore and India.· Asia Group I bright stock discount to domestic Chinese prices at widest in more than two months, but still narrower than in late-2022/early 2023.· Discount likely to make challenging any arbitrage shipments to China unless fob Asia bright stock prices fall further or domestic Chinese prices rise.· Asia Group II light-grade discount to domestic Chinese prices holds in narrow range, keeping arbitrage marginal.· Steady Asia cargo discount to domestic Chinese prices suggests China’s supply remains sufficient.· Marginal arbitrage to China incentivizes Asia producers to target other markets. .Global base oils – week of April 24: Price outlook – margins
