· Europe’s Group II light-grade prices move to wider discount to Group I prices.· Competitive Group II prices versus Group I incentivize European blenders to procure more of the premium-grade supplies.· Trend mirrors similar pattern in Asia, where Group II prices remain at a narrower premium to Group I.· Widening Europe Group II light-grade discount to Group III prices adds to attraction of using more Group II base oils.· Widening gap between approved and semi-approved Group III base oils incentivize blenders to minimize consumption of supplies with approvals.· Asia Group I heavy-neutrals premium to light grades stays wider than usual.· Asia Group II light-grade premium to Group I light grades at widest in close to a year.· Trend suggests Group I light-grade prices are unusually low relative to other grades.· Lack of Group I light-grade price reaction could reflect impact of unusually low cfr India Group I light-grade prices amid steady flows from China.· Prices for cfr India supplies at steep discount to domestic Chinese SN 150 prices.· Asia Group I bright stock premium to SN 500 stays at lowest since December as closed arbitrage to China curbs key outlet for the supplies.· Asia Group II heavy-grade premium to light grades stays much narrower than in Europe/US.· US Group II posted price premium to spot prices narrows.· Narrower posted-price premium could spur more buying interest from buyers that had held back in anticipation of a price-cut..Global base oils – week of June 12: Price outlook - margins
