· Crude oil prices extend gains to highest since early 2023 in face of firmer demand and tightening supplies through 2H 2023.· Crude oil prices show signs of steadying after more-than 20pc surge since end-June; further price-gains could face more resistance.· Diesel price premium to crude oil extends rise to six-month high on concern about tight supplies.· IEA sees crude oil supply tightening sharply in 2H 2023.· Crude oil demand likely to face pressure from slow economic growth in Europe at least into 2024, myriad signs of China’s slower-than-expected economic recovery, and interest rates in US staying high at least into early 2024.· Outright global base oils prices lag surge in feedstock costs, raising prospect at least of adjustments to reflect higher costs.· Prospect of higher prices could spur firmer demand as buyers seek to lock in supplies before price increases.· Buyers would be replenishing stocks that they cut to lower-than-usual levels in 1H 2023.· Demand is set to get further support in coming weeks ahead of seasonal pick-up in consumption in September.· Demand is likely to get further boost if any supply disruptions materialize over coming weeks.· Demand is likely to get further support if supply turns out to be tighter than expected.· Atlantic hurricane season typically gets more active from late-August through October..Global base oils - week of Aug 14: Price outlook - margins
· Crude oil prices extend gains to highest since early 2023 in face of firmer demand and tightening supplies through 2H 2023.· Crude oil prices show signs of steadying after more-than 20pc surge since end-June; further price-gains could face more resistance.· Diesel price premium to crude oil extends rise to six-month high on concern about tight supplies.· IEA sees crude oil supply tightening sharply in 2H 2023.· Crude oil demand likely to face pressure from slow economic growth in Europe at least into 2024, myriad signs of China’s slower-than-expected economic recovery, and interest rates in US staying high at least into early 2024.· Outright global base oils prices lag surge in feedstock costs, raising prospect at least of adjustments to reflect higher costs.· Prospect of higher prices could spur firmer demand as buyers seek to lock in supplies before price increases.· Buyers would be replenishing stocks that they cut to lower-than-usual levels in 1H 2023.· Demand is set to get further support in coming weeks ahead of seasonal pick-up in consumption in September.· Demand is likely to get further boost if any supply disruptions materialize over coming weeks.· Demand is likely to get further support if supply turns out to be tighter than expected.· Atlantic hurricane season typically gets more active from late-August through October..Global base oils - week of Aug 14: Price outlook - margins