· Diesel price premium to crude oil steadies at lowest level in more than a year.· Lower diesel premium to crude cuts attraction of maintaining high run-rates, incentivizes refiners to cut production or increase output of other products, including base oils.· US base oils supply likely to get boost following recent completion of major plant maintenance.· US refiners face challenge of avoiding supply-build amid signs of blenders’ changing procurement trends.· Slowdown in US exports to Latin America in February coincides with slowdown in arbitrage supplies from Asia-Pacific to the region.· Slowdown in overseas supplies to the region contrasts with signs of steady demand.· Slowdown in arbitrage supplies from Asia-Pacific should provide room for pick-up in US shipments to region.· US base oils exports to Nigeria show signs of gathering pace, following shipments in February, March and April..· Rise in shipments mirrors similar trend in 2022, provides US producers with valuable outlet for surplus supplies.· Mideast Gulf takes delivery of record volumes from South Korea in Q1 2023.· Shipments complicate arbitrage to Mideast Gulf from other sources like US.· Shipments highlight competitive price of Asia-Pacific Group II heavy grades compared with other regions.· Price advantage for Asia-Pacific Group II heavy grades extends into Q2 2023..Americas/EMEA base oils - week of April 24: Demand outlook
· Diesel price premium to crude oil steadies at lowest level in more than a year.· Lower diesel premium to crude cuts attraction of maintaining high run-rates, incentivizes refiners to cut production or increase output of other products, including base oils.· US base oils supply likely to get boost following recent completion of major plant maintenance.· US refiners face challenge of avoiding supply-build amid signs of blenders’ changing procurement trends.· Slowdown in US exports to Latin America in February coincides with slowdown in arbitrage supplies from Asia-Pacific to the region.· Slowdown in overseas supplies to the region contrasts with signs of steady demand.· Slowdown in arbitrage supplies from Asia-Pacific should provide room for pick-up in US shipments to region.· US base oils exports to Nigeria show signs of gathering pace, following shipments in February, March and April..· Rise in shipments mirrors similar trend in 2022, provides US producers with valuable outlet for surplus supplies.· Mideast Gulf takes delivery of record volumes from South Korea in Q1 2023.· Shipments complicate arbitrage to Mideast Gulf from other sources like US.· Shipments highlight competitive price of Asia-Pacific Group II heavy grades compared with other regions.· Price advantage for Asia-Pacific Group II heavy grades extends into Q2 2023..Americas/EMEA base oils - week of April 24: Demand outlook
