·        Global base oils prices extend slide vs feedstock/competing fuel prices.

·        Trend reflects impact of mostly steady base oils prices and rising feedstock/competing fuel prices.

·        Any extension of that trend would point to change in recent supply-demand fundamentals and could prompt refiners to adjust output accordingly.

·        Asia’s base oils prices extend fall vs Singapore gasoil price as outright prices mostly hold steady while gasoil price rises.

·        Asia’s Group I/II heavy-grade price premium to Singapore gasoil stays high even after sharp dip.

·        Asia's Group II light-grade price premium to gasoil falls to lowest since mid-March 2024.

·        Asia's Group I light-grade premium almost disappears after slumping from more than $90/tonne in early Oct 2024.

·        Slump in margins puts pressure on refiners to respond, especially for products where supply-demand balance is tighter.

·        China’s domestic Group II N150 base oils price premium to Shandong diesel price slips for second week.

·        Base oils premium remains firm even after this month’s dip, pointing to still-steady supply-demand fundamentals.

·        A steeper and more protracted fall in the base oils premium would point to a more marked change in those fundamentals.

·        CFR India Group II N70 premium to Singapore gasoil price extends slide to lowest in more than a year.

·        Fall in N70 premium gathers pace in Oct 2024 following surge in Singapore gasoil price, but slide began from early Sept 2024.

·        Sliding premium makes less feasible the arbitrage to move very-light grade base oils to India.

·        Weakness of diesel premium to crude could delay for now any moves by refiners to redirect supplies back into diesel pool.

·        Europe’s domestic Group I base oils premium to VGO extends fall to lowest since at least May 2024.

·        Domestic Group I premium falls more sharply than Group I export price premium and Group II/III price premium in recent weeks.

·        Trend could reflect diverging supply-demand dynamics for the different grades/markets.

·        Europe’s Group II light-grade premium to VGO falls less sharply than drop in US Group II light-grade premium to VGO.

·        Steeper drop in US light-grade premium points to weaker supply-demand fundamentals in US vs Europe.

·        US Group II export heavy- and especially light-grade price premium to VGO extends fall.

·        Premium remains firm vs levels over most of past year, stays at levels that sustain incentive for refiners to boost additional supplies for export market.