· China’s Shandong province diesel premium to crude edges up, stays low compared with past year’s levels.· India’s retail diesel premium to crude oil stays unusually wide – incentivizing refiners to maintain high run rates.· Regional plant maintenance work in Q2 2023 set to curb supply.· China’s domestic base oils supply could rise as plant maintenance work draws to a close.· Prospect of rise in China’s domestic supply and muted demand would soften or reverse impact of regional plant maintenance work.· Asia-Pacific’s surge in surplus supply vs demand and exports in March already likely left refiners and blenders with larger stocks heading into Q2 2023..· Larger surplus from Q1 eases further the impact of scheduled plant maintenance work in Q2 2023. · Sufficient regional supply, firm base oils prices vs diesel, and prospect of seasonal slowdown in demand in Q3 2023 cuts further any impact of plant maintenance work.· Shipments to southeast Asia from South Korea, Singapore, Taiwan fall in April to four-month low..· Fall in shipments balances out slowdown in demand and blenders’ moves to work down existing inventories.· Shipments would need to revive in May-June to meet steadier demand.· India likely to remain attractive outlet for shipments from Taiwan in view of signs of lower-than-expected Chinese demand and weaker prices in that market.· Rise in India’s imports from other markets like US could complicate flow of shipments from Taiwan unless prices fall..· A more prolonged flow of shipments from US to India would also impact supplies from other more regular sources, forcing surplus volumes to target other markets instead.· South Korea’s April base oils exports to the Mideast Gulf hold firm even as shipments rise to more regular outlets like China and India.· Region provides valuable outlet for surplus heavy-grade supplies especially..Asia base oils - week of May 22: Demand outlook.Contact us for more information about the data for these stories
· China’s Shandong province diesel premium to crude edges up, stays low compared with past year’s levels.· India’s retail diesel premium to crude oil stays unusually wide – incentivizing refiners to maintain high run rates.· Regional plant maintenance work in Q2 2023 set to curb supply.· China’s domestic base oils supply could rise as plant maintenance work draws to a close.· Prospect of rise in China’s domestic supply and muted demand would soften or reverse impact of regional plant maintenance work.· Asia-Pacific’s surge in surplus supply vs demand and exports in March already likely left refiners and blenders with larger stocks heading into Q2 2023..· Larger surplus from Q1 eases further the impact of scheduled plant maintenance work in Q2 2023. · Sufficient regional supply, firm base oils prices vs diesel, and prospect of seasonal slowdown in demand in Q3 2023 cuts further any impact of plant maintenance work.· Shipments to southeast Asia from South Korea, Singapore, Taiwan fall in April to four-month low..· Fall in shipments balances out slowdown in demand and blenders’ moves to work down existing inventories.· Shipments would need to revive in May-June to meet steadier demand.· India likely to remain attractive outlet for shipments from Taiwan in view of signs of lower-than-expected Chinese demand and weaker prices in that market.· Rise in India’s imports from other markets like US could complicate flow of shipments from Taiwan unless prices fall..· A more prolonged flow of shipments from US to India would also impact supplies from other more regular sources, forcing surplus volumes to target other markets instead.· South Korea’s April base oils exports to the Mideast Gulf hold firm even as shipments rise to more regular outlets like China and India.· Region provides valuable outlet for surplus heavy-grade supplies especially..Asia base oils - week of May 22: Demand outlook.Contact us for more information about the data for these stories
