· Europe Group II premium to Group I prices stays unusually narrow – boosting attraction for blenders to use more premium-grade supplies.· Europe Group II premium to Group I stays narrow even at same time as Group II price maintains steeper premium to US prices.· Trend limits pressure on prices to rise, boosts attraction of moving more supplies to Europe.· Europe Group III unapproved/less approved price premium to Group I/II falls to narrowest in more than three months.· Extension of that trend could start to attract Group I/II buyers.· Europe Group III approved price premium to Group I eases from Feb-April levels, stays unusually high, boosting incentive to minimize consumption of the grade.· Europe Group III 8cst premium to Group II heavy grades at narrowest in more than three months, stays much higher than in 2H 2022.· Europe domestic Group I premium to export prices widens further – incentivizing refiners to focus on regional market.· Asia Group II premium to Group I prices widens, especially for light grades.· Trend likely to boost attraction of consuming more Group I light grades where possible.· Asia Group II heavy-grade premium to light grades stays unusually narrow.· Trend contrasts with Europe/US markets and sustains arbitrage to move heavy grades to those markets.· Domestic China Group II light-grade discount widens vs domestic prices for imported supplies – boosting attraction of supplies from domestic sources.· Domestic China Group II light-grade discount to Group I prices moves to widest since 2H March..Global base oils - week of May 8: Price outlook - margins
· Europe Group II premium to Group I prices stays unusually narrow – boosting attraction for blenders to use more premium-grade supplies.· Europe Group II premium to Group I stays narrow even at same time as Group II price maintains steeper premium to US prices.· Trend limits pressure on prices to rise, boosts attraction of moving more supplies to Europe.· Europe Group III unapproved/less approved price premium to Group I/II falls to narrowest in more than three months.· Extension of that trend could start to attract Group I/II buyers.· Europe Group III approved price premium to Group I eases from Feb-April levels, stays unusually high, boosting incentive to minimize consumption of the grade.· Europe Group III 8cst premium to Group II heavy grades at narrowest in more than three months, stays much higher than in 2H 2022.· Europe domestic Group I premium to export prices widens further – incentivizing refiners to focus on regional market.· Asia Group II premium to Group I prices widens, especially for light grades.· Trend likely to boost attraction of consuming more Group I light grades where possible.· Asia Group II heavy-grade premium to light grades stays unusually narrow.· Trend contrasts with Europe/US markets and sustains arbitrage to move heavy grades to those markets.· Domestic China Group II light-grade discount widens vs domestic prices for imported supplies – boosting attraction of supplies from domestic sources.· Domestic China Group II light-grade discount to Group I prices moves to widest since 2H March..Global base oils - week of May 8: Price outlook - margins
