· Lube demand holds firm in Americas, weakening in Europe.· Europe lube demand weakness focused more on industrial oils..· Eurozone GDP growth slows in Q1, more challenging Q2 ahead.· France Q1 economic growth stalls. Domestic demand slowing.· Italy’s Q1 economy contracts; Germany’s economy grows.· EC’s European economic sentiment indicator falls in April to 13-month low.· US economic growth expected to pick up strongly in Q2.· China’s April PMI falls to lowest in more than two years.· Covid outbreak in China extends to Beijing – adds to global supply chain pressures.· Lockdowns in China impact factories, domestic demand/car sales.· China car sales seen falling by more than 30pc in April yoy because of lockdowns in key markets like Jilin and Shanghai.· Weak Chinese demand frees up more base oil supplies to move to other markets.· Steady domestic retail diesel prices in India coincide with rising imported N70 prices, narrowing the spread.· India’s demand for very light grades is typically lower when the spread between those prices is narrower.· Concern about base oil supply boosts demand from term buyers.· Strong demand from term buyers curbs supply for spot buyers.· Limited spot supply likely to boost demand for any volumes that are available.· Mideast Gulf demand likely to improve following end of Ramadan.· Europe/Africa demand for additional base oil volumes likely to remain stronger than other markets.
· Lube demand holds firm in Americas, weakening in Europe.· Europe lube demand weakness focused more on industrial oils..· Eurozone GDP growth slows in Q1, more challenging Q2 ahead.· France Q1 economic growth stalls. Domestic demand slowing.· Italy’s Q1 economy contracts; Germany’s economy grows.· EC’s European economic sentiment indicator falls in April to 13-month low.· US economic growth expected to pick up strongly in Q2.· China’s April PMI falls to lowest in more than two years.· Covid outbreak in China extends to Beijing – adds to global supply chain pressures.· Lockdowns in China impact factories, domestic demand/car sales.· China car sales seen falling by more than 30pc in April yoy because of lockdowns in key markets like Jilin and Shanghai.· Weak Chinese demand frees up more base oil supplies to move to other markets.· Steady domestic retail diesel prices in India coincide with rising imported N70 prices, narrowing the spread.· India’s demand for very light grades is typically lower when the spread between those prices is narrower.· Concern about base oil supply boosts demand from term buyers.· Strong demand from term buyers curbs supply for spot buyers.· Limited spot supply likely to boost demand for any volumes that are available.· Mideast Gulf demand likely to improve following end of Ramadan.· Europe/Africa demand for additional base oil volumes likely to remain stronger than other markets.
