· Crude oil prices continue to hold close to $75/bl, maintaining narrow range since early May.· Diesel prices vs crude oil stay firmer than in April and than historical levels, remain much lower than unusually high levels in 2022.· US interest rates likely to be raised again in July amid signs US economy remains unexpectedly strong.· Eurozone headline inflation falls, core inflation rises within expectations.· Diverging rate of inflation throughout Eurozone region complicates next interest-rate move, which is still likely to be upwards.· China’s June manufacturing activity contracts for third month; non-manufacturing activity slows further.· High interest rates, muted lube demand and plentiful supply boost incentive for blenders to procure smaller volumes as and when required.· Trend leaves blenders more exposed to any unexpected supply disruptions.· Global lube demand in Q3 2023 faces prospect of falling as much as 200,000t from Q2 amid seasonal/economic slowdown. .· Likely drop in demand curbs blenders’ urgency to procure additional supplies.· Likely drop in demand puts pressure on refiners to adjust output accordingly to avoid supply-build.· Prospect of rise in surplus supplies provides blenders with access to additional supplies as and when required, adding to attraction of holding lower stocks.· Europe’s lube demand likely to fall less than consumption in Asia and Latin America. .· A smaller fall in Europe’s lube demand could support firmer base oils prices relative to other regions and attract additional supplies to the region..Europe’s Q3 lube demand set to outpace other regions.Contact us for more information about the data for these stories
· Crude oil prices continue to hold close to $75/bl, maintaining narrow range since early May.· Diesel prices vs crude oil stay firmer than in April and than historical levels, remain much lower than unusually high levels in 2022.· US interest rates likely to be raised again in July amid signs US economy remains unexpectedly strong.· Eurozone headline inflation falls, core inflation rises within expectations.· Diverging rate of inflation throughout Eurozone region complicates next interest-rate move, which is still likely to be upwards.· China’s June manufacturing activity contracts for third month; non-manufacturing activity slows further.· High interest rates, muted lube demand and plentiful supply boost incentive for blenders to procure smaller volumes as and when required.· Trend leaves blenders more exposed to any unexpected supply disruptions.· Global lube demand in Q3 2023 faces prospect of falling as much as 200,000t from Q2 amid seasonal/economic slowdown. .· Likely drop in demand curbs blenders’ urgency to procure additional supplies.· Likely drop in demand puts pressure on refiners to adjust output accordingly to avoid supply-build.· Prospect of rise in surplus supplies provides blenders with access to additional supplies as and when required, adding to attraction of holding lower stocks.· Europe’s lube demand likely to fall less than consumption in Asia and Latin America. .· A smaller fall in Europe’s lube demand could support firmer base oils prices relative to other regions and attract additional supplies to the region..Europe’s Q3 lube demand set to outpace other regions.Contact us for more information about the data for these stories
