· Europe/US Group III base oil price premium to Asia Group III prices edges higher after sustained slide, ICIS data shows.· Trend raises prospect of more premium-grade supplies moving to Europe and US.· Current price spreads remain at levels that make less attractive for now a repeat of the surge in Group III shipments to Europe in Q2 2023.· More Group III supplies could instead start to move to US market.· Europe Group III 4cst base oils premium to Asia prices extends gradual recovery after falling to nine-month low of less than $350/t in mid-July..· Europe Group III premium to Asia prices falls through Q2 2023 after rising to multi-year high of more than $650/t in early April.· Europe’s widening Group III premium to Asia prices in early 2023 incentivized more supplies from Mideast Gulf and Asia to move to Europe in Q2 2023.· Recovery in Europe Group III premium to Asia prices in recent weeks remains relatively small so far – premium edges back above $400/t.· Europe’s price premium to Asia prices remains much lower than earlier this year but well above historical levels.· Trend could start to revive interest in moving more Asia-Pacific supplies to Europe.· US Group III 4cst premium to Asia prices recovers in recent weeks after falling in 1H July to more-than-two-year low of around $300/t..· US Group III premium to Asia prices fell from around $600/t at end-2022, cutting attraction of moving Group III shipments to US.· US Group III premium to Asia prices remains below $400/t even after recent recovery.· US Group III discount to Europe prices narrows to less than $20/t, extending a trend that began in early Q2 2023. .· US Group III discount to Europe prices widened to more than $200/t at start of Q2 2023.· US Group III discount to Europe prices was the widest in more than five years.· Wide US Group III discount to Europe prices boosted attraction of moving more Group III supplies to Europe rather than to US in Q1-Q2 2023.· Trend contrasted with larger flow of Group III supplies to US than Europe in 2022 from markets like Mideast Gulf.· Narrower US Group III discount to Europe prices in recent weeks reduces attraction of prioritising Europe market, raising prospect of more shipments moving to US over coming months.· Trend raises prospect of Group III supplies targeting US and European markets over coming months, rather than just Europe..Global base oils - week of Sep 4: Price outlook - margins
· Europe/US Group III base oil price premium to Asia Group III prices edges higher after sustained slide, ICIS data shows.· Trend raises prospect of more premium-grade supplies moving to Europe and US.· Current price spreads remain at levels that make less attractive for now a repeat of the surge in Group III shipments to Europe in Q2 2023.· More Group III supplies could instead start to move to US market.· Europe Group III 4cst base oils premium to Asia prices extends gradual recovery after falling to nine-month low of less than $350/t in mid-July..· Europe Group III premium to Asia prices falls through Q2 2023 after rising to multi-year high of more than $650/t in early April.· Europe’s widening Group III premium to Asia prices in early 2023 incentivized more supplies from Mideast Gulf and Asia to move to Europe in Q2 2023.· Recovery in Europe Group III premium to Asia prices in recent weeks remains relatively small so far – premium edges back above $400/t.· Europe’s price premium to Asia prices remains much lower than earlier this year but well above historical levels.· Trend could start to revive interest in moving more Asia-Pacific supplies to Europe.· US Group III 4cst premium to Asia prices recovers in recent weeks after falling in 1H July to more-than-two-year low of around $300/t..· US Group III premium to Asia prices fell from around $600/t at end-2022, cutting attraction of moving Group III shipments to US.· US Group III premium to Asia prices remains below $400/t even after recent recovery.· US Group III discount to Europe prices narrows to less than $20/t, extending a trend that began in early Q2 2023. .· US Group III discount to Europe prices widened to more than $200/t at start of Q2 2023.· US Group III discount to Europe prices was the widest in more than five years.· Wide US Group III discount to Europe prices boosted attraction of moving more Group III supplies to Europe rather than to US in Q1-Q2 2023.· Trend contrasted with larger flow of Group III supplies to US than Europe in 2022 from markets like Mideast Gulf.· Narrower US Group III discount to Europe prices in recent weeks reduces attraction of prioritising Europe market, raising prospect of more shipments moving to US over coming months.· Trend raises prospect of Group III supplies targeting US and European markets over coming months, rather than just Europe..Global base oils - week of Sep 4: Price outlook - margins