· Base oils values versus feedstock/competing fuel prices hold close to highest levels since late Q2/early Q3 2023 and well above average levels for the year, ICIS data shows.· Firm base oils values and weaker diesel values versus crude oil incentivize refiners to maintain or increase base oils output.· Firm base oils values versus feedstock/diesel values could raise expectations of adjustment to outright prices.· Any such pressure is likely to be larger in markets which face larger supply surplus, and to be smaller in markets where supply is tighter.· Asia Group I/II base oils price premium to regional gasoil prices hold at highest since end-Q2 2023..· Asia Group I bright stock premium to gasoil extends rise to highest since early Jun 2023.· Asia Group I premium to gasoil of more $150/t extends rise above average for the year of around $80/t.· Asia Group II light/heavy-grade premium to gasoil edges down, still up around $200/t since Aug 2023..· China’s domestic Group II light-grade premium to Shandong diesel prices holds firm at highest since early July 2023, starts to lag year-earlier levels..· Domestic base oil price premium to diesel holds firm as outright prices fall more slowly than diesel prices.· Domestic price premium to diesel rose this time last year because outright prices rose.· Signs of steadier base oil premium to diesel adds to signs of more mixed signals about state of supply-demand fundamentals in China’s market..· India’s Group II N70 premium to gasoil falls but still up close to $250/t since Aug 2023..· Still-high premium incentivizes overseas refiners to produce more base oils..· Europe’s Group II light-grade premium to VGO rises to highest since early Aug-2023..· Europe’s Group II light-grade premium to VGO still around $30/t below average for the year.· Europe’s Group I export price premium to gasoil rises to highest since early July 2023.· Europe’s domestic Group I premium to VGO falls, returns closer to average for the year of around $485/t..· US Group II light-grade export premium to heating oil falls sharply, stays more than $100/t above average so far this year.· US Group II export heavy-grade premium to VGO extends slide to lowest since end-Sep 2023, falls $60/t below average for the year of around $600/t.· US Group II light-grade domestic premium to VGO edges down, almost matching N600 export premium..· US Pale 60 premium to VGO holds close to highest this year after rising almost $280/t in past two months..Global base oils - week of Nov 13: Demand outlook
· Base oils values versus feedstock/competing fuel prices hold close to highest levels since late Q2/early Q3 2023 and well above average levels for the year, ICIS data shows.· Firm base oils values and weaker diesel values versus crude oil incentivize refiners to maintain or increase base oils output.· Firm base oils values versus feedstock/diesel values could raise expectations of adjustment to outright prices.· Any such pressure is likely to be larger in markets which face larger supply surplus, and to be smaller in markets where supply is tighter.· Asia Group I/II base oils price premium to regional gasoil prices hold at highest since end-Q2 2023..· Asia Group I bright stock premium to gasoil extends rise to highest since early Jun 2023.· Asia Group I premium to gasoil of more $150/t extends rise above average for the year of around $80/t.· Asia Group II light/heavy-grade premium to gasoil edges down, still up around $200/t since Aug 2023..· China’s domestic Group II light-grade premium to Shandong diesel prices holds firm at highest since early July 2023, starts to lag year-earlier levels..· Domestic base oil price premium to diesel holds firm as outright prices fall more slowly than diesel prices.· Domestic price premium to diesel rose this time last year because outright prices rose.· Signs of steadier base oil premium to diesel adds to signs of more mixed signals about state of supply-demand fundamentals in China’s market..· India’s Group II N70 premium to gasoil falls but still up close to $250/t since Aug 2023..· Still-high premium incentivizes overseas refiners to produce more base oils..· Europe’s Group II light-grade premium to VGO rises to highest since early Aug-2023..· Europe’s Group II light-grade premium to VGO still around $30/t below average for the year.· Europe’s Group I export price premium to gasoil rises to highest since early July 2023.· Europe’s domestic Group I premium to VGO falls, returns closer to average for the year of around $485/t..· US Group II light-grade export premium to heating oil falls sharply, stays more than $100/t above average so far this year.· US Group II export heavy-grade premium to VGO extends slide to lowest since end-Sep 2023, falls $60/t below average for the year of around $600/t.· US Group II light-grade domestic premium to VGO edges down, almost matching N600 export premium..· US Pale 60 premium to VGO holds close to highest this year after rising almost $280/t in past two months..Global base oils - week of Nov 13: Demand outlook
