· Global base oils prices maintain firmer premium vs diesel/feedstock prices since start of Oct 2023 even as they slip from recent highs, ICIS data shows.· Base oils premium to diesel/feedstock prices recover at a time of year when demand faces a seasonal slowdown.· Firmer base oils premium to diesel/feedstock prices coincides with slowdown in plant maintenance activity in Americas/Europe, raising prospect of rise in supply.· Firmer base oils premium incentivizes refiners to maintain rather than cut supply, increasing possibility of pick-up in surplus volumes during final months of the year.· Asia base oils prices extend recovery versus gasoil – Group II premium to gasoil rises to highest in more than three months.· Asia Group I light-grade prices maintain discount to gasoil even as they rebound by more than $100/t in less than a month.. · China’s domestic light-grade Group II base oils premium to Shandong diesel rebounds to three-month high..· If sustained, firmer base oils premium could point to pick-up in demand..· Europe’s Group I/II base oils values vs gasoil hold much firmer vs end-Sep 2023, even if still relatively low, especially for Group II.· Europe Group III base oils values vs gasoil hold close to lowest in more than a year.· Europe Group I base oils values vs VGO extend recovery since mid-Sep 2023.· Europe Group II base oils values vs VGO extend recovery but remain lower than usual..· US Group II export price premium to heating oil erases most of this month’s gains, stays higher than at end-Aug 2023.· US Group II/III price premium to VGO stays low even as it extends recovery from recent lows in mid-Sep 2023..Global base oils - week of Oct 9: Demand outlook
· Global base oils prices maintain firmer premium vs diesel/feedstock prices since start of Oct 2023 even as they slip from recent highs, ICIS data shows.· Base oils premium to diesel/feedstock prices recover at a time of year when demand faces a seasonal slowdown.· Firmer base oils premium to diesel/feedstock prices coincides with slowdown in plant maintenance activity in Americas/Europe, raising prospect of rise in supply.· Firmer base oils premium incentivizes refiners to maintain rather than cut supply, increasing possibility of pick-up in surplus volumes during final months of the year.· Asia base oils prices extend recovery versus gasoil – Group II premium to gasoil rises to highest in more than three months.· Asia Group I light-grade prices maintain discount to gasoil even as they rebound by more than $100/t in less than a month.. · China’s domestic light-grade Group II base oils premium to Shandong diesel rebounds to three-month high..· If sustained, firmer base oils premium could point to pick-up in demand..· Europe’s Group I/II base oils values vs gasoil hold much firmer vs end-Sep 2023, even if still relatively low, especially for Group II.· Europe Group III base oils values vs gasoil hold close to lowest in more than a year.· Europe Group I base oils values vs VGO extend recovery since mid-Sep 2023.· Europe Group II base oils values vs VGO extend recovery but remain lower than usual..· US Group II export price premium to heating oil erases most of this month’s gains, stays higher than at end-Aug 2023.· US Group II/III price premium to VGO stays low even as it extends recovery from recent lows in mid-Sep 2023..Global base oils - week of Oct 9: Demand outlook