· Global base oils prices stay weak/extend fall versus competing and feedstock prices, ICIS data shows.· Light-grade export prices globally maintain discounts to diesel prices.· Group I heavy-neutrals prices maintain discount to gasoil in Asia, barely profitable in Europe.· Weak export prices versus diesel incentivize refiners to minimize production, focus on producing more diesel instead.· Any extension of such moves would coincide with round of plant maintenance work in Asia, and tight Group I supplies in Europe.· Asia’s Group II prices strengthen in first-half September to firmest versus diesel since late July amid higher outright prices..· Asia’s Group II prices remain at discount or barely profitable versus diesel even with recent recovery in values versus diesel, as diesel prices also rise..· China’s domestic Group II light-grade premium to Shandong diesel prices shows signs of consolidating in recent weeks close to lowest level since Oct 2022..· Europe’s Group I base oils values hold close to lowest versus gasoil in at least six months.· Europe’s Group II base oils values at lowest versus gasoil in more than four months.· Europe’s Group III base oils prices at ten-month low versus gasoil.· Europe’s base oils price premium to vacuum gasoil (VGO) extends dip, with speed of fall gathering pace..· US’ domestic Group II light-grade price premium to heating oil holds close to lowest since 1H 2022.· US’ domestic Group II light-grade posted price premium to heating oil holds close to lowest since Oct 2022, erasing most of impact of rise in outright prices in Aug 2023.· US’ domestic Group III premium to heating oil falls to ten-month low.· US’ domestic Group II light-grade premium to VGO falls to lowest since Feb 2022..· Falling base oils premium to heating oil/VGO raises prospect of run-cuts or further moves to raise prices..Global base oils - week of Sep 4: Price outlook - arbitrage
· Global base oils prices stay weak/extend fall versus competing and feedstock prices, ICIS data shows.· Light-grade export prices globally maintain discounts to diesel prices.· Group I heavy-neutrals prices maintain discount to gasoil in Asia, barely profitable in Europe.· Weak export prices versus diesel incentivize refiners to minimize production, focus on producing more diesel instead.· Any extension of such moves would coincide with round of plant maintenance work in Asia, and tight Group I supplies in Europe.· Asia’s Group II prices strengthen in first-half September to firmest versus diesel since late July amid higher outright prices..· Asia’s Group II prices remain at discount or barely profitable versus diesel even with recent recovery in values versus diesel, as diesel prices also rise..· China’s domestic Group II light-grade premium to Shandong diesel prices shows signs of consolidating in recent weeks close to lowest level since Oct 2022..· Europe’s Group I base oils values hold close to lowest versus gasoil in at least six months.· Europe’s Group II base oils values at lowest versus gasoil in more than four months.· Europe’s Group III base oils prices at ten-month low versus gasoil.· Europe’s base oils price premium to vacuum gasoil (VGO) extends dip, with speed of fall gathering pace..· US’ domestic Group II light-grade price premium to heating oil holds close to lowest since 1H 2022.· US’ domestic Group II light-grade posted price premium to heating oil holds close to lowest since Oct 2022, erasing most of impact of rise in outright prices in Aug 2023.· US’ domestic Group III premium to heating oil falls to ten-month low.· US’ domestic Group II light-grade premium to VGO falls to lowest since Feb 2022..· Falling base oils premium to heating oil/VGO raises prospect of run-cuts or further moves to raise prices..Global base oils - week of Sep 4: Price outlook - arbitrage
