· Europe Group II premium to Group I prices stays much narrower than in recent months.· Narrow premium incentivizes blenders to procure more Group II base oils.· Group II refiners face choice of boosting margins by raising prices, or of boosting demand by maintaining narrow premium to Group I.· Group II refiners’ leverage rises when blenders have fewer alternative supply options.· Europe Group III 8cst premium to Group II heavy grades narrows vs February-March levels, remains high vs late 2022/early 2023 levels.· Wide 8cst premium to heavy grades incentivizes blenders to use more heavy grades.· Europe Group III 4cst premium to Group I/II light grades stays wide, suggesting blenders have limited alternative options.· Europe and US Group II heavy-grade premium to light grades stays wide.· Asia Group II heavy-grade premium to light grades stays narrow.· Asia Group II premium to Group I stays narrow – incentivizing blenders to use more Group II.· Asia Group III premium to Group I stays high.· Asia Group I bright stock premium to heavy neutrals falls to lowest this year, after peaking in February..Global base oils – week of April 24: Price outlook – margins
· Europe Group II premium to Group I prices stays much narrower than in recent months.· Narrow premium incentivizes blenders to procure more Group II base oils.· Group II refiners face choice of boosting margins by raising prices, or of boosting demand by maintaining narrow premium to Group I.· Group II refiners’ leverage rises when blenders have fewer alternative supply options.· Europe Group III 8cst premium to Group II heavy grades narrows vs February-March levels, remains high vs late 2022/early 2023 levels.· Wide 8cst premium to heavy grades incentivizes blenders to use more heavy grades.· Europe Group III 4cst premium to Group I/II light grades stays wide, suggesting blenders have limited alternative options.· Europe and US Group II heavy-grade premium to light grades stays wide.· Asia Group II heavy-grade premium to light grades stays narrow.· Asia Group II premium to Group I stays narrow – incentivizing blenders to use more Group II.· Asia Group III premium to Group I stays high.· Asia Group I bright stock premium to heavy neutrals falls to lowest this year, after peaking in February..Global base oils – week of April 24: Price outlook – margins
