· Global base oils export prices face more pressure vs feedstock/competing fuel prices, ICIS data shows.· Global domestic prices remain relatively firm vs feedstock/competing fuel prices.· Trend incentivizes refiners to adjust production to limit supplies for export markets.· Fob Asia Group II base oils premium to regional gasoil prices steadies close to lowest in more than three months.· Lower premium cuts attraction of producing additional supplies.· Fob Asia Group I base oils premium to gasoil maintains narrow range since mid-Nov 2023.· Fob Asia Group I premium to gasoil remains up more than $150/t since late Q3 2023..· Relatively firm Group I premium incentivizes refiners to produce more base oils..· Domestic China Group II light-grade price premium to Shandong diesel prices extends rise to highest since early July 2023..· Firmer premium contrasts with relatively weak domestic diesel premium to crude.· Trend incentivizes domestic refiners to boost base oils output..· Cfr India N70 premium to Asia gasoil prices steadies close to lowest since early Oct 2023..· Lower premium cuts attraction for Asia’s refiners to move more very-light grades to India..· Europe’s Group I export prices weaken versus gasoil prices at least to lowest since start of Q4 2023.· Lower premium cuts attraction of producing additional Group I supplies.· Europe’s Group I domestic price premium to VGO slips in recent weeks, holds in narrow range since start of Q4 2023.· Steadier values contrast with sharp slide in Group I premium to VGO at end-2022/early 2023..· Europe Group II light-grade premium to VGO falls to two-month low, holds well above Q3 2023 levels.· Europe Group III 4cst (low) premium to VGO falls to lowest since 1H 2022, even if from unusually high levels in 1H 2023..· US Group II light/heavy export prices weaken further vs heating oil.· US Group II light-grade weakness vs heating oil adds to frequent periods of similar weakness over past year.· US Group II heavy-grade weakness vs heating oil is unusual, adds to pressure on refiners to cut production.· US Group II domestic price premium to VGO extends fall since mid-Nov 2023, with heavy-grade premium dipping to lowest since 1H 2022..· US Group II premiums to VGO remain unusually high vs typical levels before 2021.· Firm domestic Group II premium to VGO curbs incentive for refiners to cut output.· US Group III price premium to VGO extends fall to lowest since 1H 2022.· US Group II posted price premium to heating oil/VGO edges lower, stays unusually firm.· Firm premiums incentivize refiners to maintain/raise output..Global base oils - week of Jan 15: Demand outlook
· Global base oils export prices face more pressure vs feedstock/competing fuel prices, ICIS data shows.· Global domestic prices remain relatively firm vs feedstock/competing fuel prices.· Trend incentivizes refiners to adjust production to limit supplies for export markets.· Fob Asia Group II base oils premium to regional gasoil prices steadies close to lowest in more than three months.· Lower premium cuts attraction of producing additional supplies.· Fob Asia Group I base oils premium to gasoil maintains narrow range since mid-Nov 2023.· Fob Asia Group I premium to gasoil remains up more than $150/t since late Q3 2023..· Relatively firm Group I premium incentivizes refiners to produce more base oils..· Domestic China Group II light-grade price premium to Shandong diesel prices extends rise to highest since early July 2023..· Firmer premium contrasts with relatively weak domestic diesel premium to crude.· Trend incentivizes domestic refiners to boost base oils output..· Cfr India N70 premium to Asia gasoil prices steadies close to lowest since early Oct 2023..· Lower premium cuts attraction for Asia’s refiners to move more very-light grades to India..· Europe’s Group I export prices weaken versus gasoil prices at least to lowest since start of Q4 2023.· Lower premium cuts attraction of producing additional Group I supplies.· Europe’s Group I domestic price premium to VGO slips in recent weeks, holds in narrow range since start of Q4 2023.· Steadier values contrast with sharp slide in Group I premium to VGO at end-2022/early 2023..· Europe Group II light-grade premium to VGO falls to two-month low, holds well above Q3 2023 levels.· Europe Group III 4cst (low) premium to VGO falls to lowest since 1H 2022, even if from unusually high levels in 1H 2023..· US Group II light/heavy export prices weaken further vs heating oil.· US Group II light-grade weakness vs heating oil adds to frequent periods of similar weakness over past year.· US Group II heavy-grade weakness vs heating oil is unusual, adds to pressure on refiners to cut production.· US Group II domestic price premium to VGO extends fall since mid-Nov 2023, with heavy-grade premium dipping to lowest since 1H 2022..· US Group II premiums to VGO remain unusually high vs typical levels before 2021.· Firm domestic Group II premium to VGO curbs incentive for refiners to cut output.· US Group III price premium to VGO extends fall to lowest since 1H 2022.· US Group II posted price premium to heating oil/VGO edges lower, stays unusually firm.· Firm premiums incentivize refiners to maintain/raise output..Global base oils - week of Jan 15: Demand outlook
