· Europe Group II price premium to Group I prices stays narrower than usual.· Narrower Group II premium boosts incentive for blenders to consume more of the premium-grade product.· Any pick-up in Group II demand would coincide with signs of slowdown in Group II flows from US to Europe.· Europe’s Group III base oils prices stay unusually high relative to Group I/II base oils in March even as supplies from Spain surge to highest in more than four years.· Firm Group III prices suggest supply remains tight even with rise in shipments.· Group III supply set to tighten further in coming weeks during plant maintenance work in Europe and South Korea.· Steep Group III premium to Group I/II and tight supply add to attraction for blenders to increase consumption of Group II in place of Group III and Group I.· Europe Group I/II heavy-grade prices maintain steep premium to light grades.· US Group II heavy-grade prices maintain steep premium to light grades.· Asia Group II heavy-grade prices maintain relatively narrow premium to light grades.· Asia Group II heavy-grade premium to light grades remains wider than in recent months, but much narrower than in Europe/US.· Trend reflects structural Group II heavy-grade surplus in Asia, which partly reflects muted pick-up in Chinese demand.· Asia Group II premium to Group I prices continues to widen, especially for light grades.· Trend set to boost attraction for blenders to switch to Group I where possible.· Weak Asia Group I light-grade prices relative to Group II follow persistent flow of Group I exports from China in recent months.· Asia Group III premium to Group I/II stays wide – incentivizing switch to Group I/II.· Persistence of wide Group III premium points to tight supply or blenders’ difficulty switching to other grades, or both..Global base oils – week of April 10: Price outlook - margins
· Europe Group II price premium to Group I prices stays narrower than usual.· Narrower Group II premium boosts incentive for blenders to consume more of the premium-grade product.· Any pick-up in Group II demand would coincide with signs of slowdown in Group II flows from US to Europe.· Europe’s Group III base oils prices stay unusually high relative to Group I/II base oils in March even as supplies from Spain surge to highest in more than four years.· Firm Group III prices suggest supply remains tight even with rise in shipments.· Group III supply set to tighten further in coming weeks during plant maintenance work in Europe and South Korea.· Steep Group III premium to Group I/II and tight supply add to attraction for blenders to increase consumption of Group II in place of Group III and Group I.· Europe Group I/II heavy-grade prices maintain steep premium to light grades.· US Group II heavy-grade prices maintain steep premium to light grades.· Asia Group II heavy-grade prices maintain relatively narrow premium to light grades.· Asia Group II heavy-grade premium to light grades remains wider than in recent months, but much narrower than in Europe/US.· Trend reflects structural Group II heavy-grade surplus in Asia, which partly reflects muted pick-up in Chinese demand.· Asia Group II premium to Group I prices continues to widen, especially for light grades.· Trend set to boost attraction for blenders to switch to Group I where possible.· Weak Asia Group I light-grade prices relative to Group II follow persistent flow of Group I exports from China in recent months.· Asia Group III premium to Group I/II stays wide – incentivizing switch to Group I/II.· Persistence of wide Group III premium points to tight supply or blenders’ difficulty switching to other grades, or both..Global base oils – week of April 10: Price outlook - margins