· Global base oil values show signs of steadying versus diesel prices.· Global base oils values stay unusually weak versus diesel prices even as they stabilize.· Global base oils values hold at levels that deter refiners from producing additional supplies; instead incentivize them to boost diesel output.· Removal of additional supplies would give refiners more leverage to respond to surge in feedstock/diesel prices since late June..· Europe’s Group I/II prices show signs of steadying versus diesel, after sliding sharply since 2H June..· Europe’s Group I premium to diesel holds close to lowest since Jan 2023; Group II values at lowest since early March 2023..· Asia’s Group I/II base oils values vs diesel maintain steep discount to diesel..· Asia’s Group I prices vs diesel slip to lowest since Nov 2022; Group II values at lowest since Jan 2023..· China’s domestic Group II light-grade base oil premium to Shandong diesel edges up after sustained slide since 2H June; holds close to lowest since Oct 2022..· Margins throughout Asia/China incentivize refiners to prioritise diesel over base oils..· US Group II light-grade posted price premium to heating oil rises after several refiners raise posted prices.· Posted price premium to heating oil stays close to lowest since Oct 2022 even with the price-increase..Global base oils - week of Aug 7: Demand outlook
· Global base oil values show signs of steadying versus diesel prices.· Global base oils values stay unusually weak versus diesel prices even as they stabilize.· Global base oils values hold at levels that deter refiners from producing additional supplies; instead incentivize them to boost diesel output.· Removal of additional supplies would give refiners more leverage to respond to surge in feedstock/diesel prices since late June..· Europe’s Group I/II prices show signs of steadying versus diesel, after sliding sharply since 2H June..· Europe’s Group I premium to diesel holds close to lowest since Jan 2023; Group II values at lowest since early March 2023..· Asia’s Group I/II base oils values vs diesel maintain steep discount to diesel..· Asia’s Group I prices vs diesel slip to lowest since Nov 2022; Group II values at lowest since Jan 2023..· China’s domestic Group II light-grade base oil premium to Shandong diesel edges up after sustained slide since 2H June; holds close to lowest since Oct 2022..· Margins throughout Asia/China incentivize refiners to prioritise diesel over base oils..· US Group II light-grade posted price premium to heating oil rises after several refiners raise posted prices.· Posted price premium to heating oil stays close to lowest since Oct 2022 even with the price-increase..Global base oils - week of Aug 7: Demand outlook