· Global base oils prices extend fall versus competing fuel/feedstock prices.· Falling margins insinuate weakening supply-demand fundamentals, incentivize refiners to cut production, especially for surplus export supplies. · FOB Europe export Group I price premium to gasoil stays unusually low, incentivizing refiners to minimize supplies.· FOB Europe export Group I SN 150/SN 500 price premium to gasoil falls to lowest since Jan 2023, bright stock premium falls to lowest since Q1 2022.· Europe domestic Group I SN 150 premium to VGO falls close to lowest since April 2023.· Europe domestic Group II N150 premium to VGO falls to three-month low, stays more than $150/t below year-earlier levels.· Europe domestic Group III 4cst (low) premium to VGO falls to lowest since Q2 2022..· US Group II export light/heavy grade price discount to heating oil widens further, pointing to weak fundamentals and incentivizing refiners to cut supply.· US Group II export heavy-grade premium to light grades holds close to narrowest in two years, compounding impact of weak values versus heating oil/VGO.· US Group II domestic heavy-grade prices especially maintain steep premium to export prices.· US Group II domestic prices fall much less steeply versus VGO..· Smaller fall in domestic-price premium curbs pressure on refiners to cut production – raising prospect of prolonging persistent availability of surplus supply.· US Group II posted price premium to VGO falls to lowest since Q3 2023.· US Group II posted price premium to domestic prices extends rise to highest in more than eight years.· Smaller fall in Group II posted price premium to VGO, and rising premium to domestic prices, curbs incentive for refiners to cut production..US’ Dec base oils exports stay high
· Global base oils prices extend fall versus competing fuel/feedstock prices.· Falling margins insinuate weakening supply-demand fundamentals, incentivize refiners to cut production, especially for surplus export supplies. · FOB Europe export Group I price premium to gasoil stays unusually low, incentivizing refiners to minimize supplies.· FOB Europe export Group I SN 150/SN 500 price premium to gasoil falls to lowest since Jan 2023, bright stock premium falls to lowest since Q1 2022.· Europe domestic Group I SN 150 premium to VGO falls close to lowest since April 2023.· Europe domestic Group II N150 premium to VGO falls to three-month low, stays more than $150/t below year-earlier levels.· Europe domestic Group III 4cst (low) premium to VGO falls to lowest since Q2 2022..· US Group II export light/heavy grade price discount to heating oil widens further, pointing to weak fundamentals and incentivizing refiners to cut supply.· US Group II export heavy-grade premium to light grades holds close to narrowest in two years, compounding impact of weak values versus heating oil/VGO.· US Group II domestic heavy-grade prices especially maintain steep premium to export prices.· US Group II domestic prices fall much less steeply versus VGO..· Smaller fall in domestic-price premium curbs pressure on refiners to cut production – raising prospect of prolonging persistent availability of surplus supply.· US Group II posted price premium to VGO falls to lowest since Q3 2023.· US Group II posted price premium to domestic prices extends rise to highest in more than eight years.· Smaller fall in Group II posted price premium to VGO, and rising premium to domestic prices, curbs incentive for refiners to cut production..US’ Dec base oils exports stay high