· Europe Group II prices maintain narrower premium to Group I prices, incentivizing blenders to procure more premium-grade base oils.· Europe unapproved/semi-approved Group III price premium to Group I/II base oils holds close to narrowest in at least three months – boosting interest in the premium-grade supplies.· Europe approved Group III price premium to Group I base oils stays high, even if much narrower than three months ago.· Europe approved Group III premium to Group I holds at lower level even with Group III plant maintenance work in Europe and Asia in Q2 2023.· Narrower premium suggests supply is sufficient to meet demand.· Wider Europe domestic price premium to export prices suggests strong domestic demand and tighter surplus supply.· Wider premium is less sustainable if fundamentals deviate from that dynamic.· Wide gap between domestic and export prices can incentivize domestic buyers to hold off when supply is plentiful.· US Group II prices maintain unusually steep gap between light and heavy grades.· Dynamic contrasts with much narrower light-heavy price spreads in Europe/Asia.· Asia Group II light-grade premium to Group I stays wider than usual, partly reflecting unusually low Group I prices.· Asia Group II heavy-grade premium to Group I stays wider than in Q1 2023, holds at levels that are unlikely to incentivize blenders to target more Group I instead.· India’s Group III 8cst base oils imports rise to eight-month high in April as prices fall back to discount to Group II heavy grades for first time this year..Global base oils - week of May 22: Price outlook - margins.Contact us for more information about the data for these stories
· Europe Group II prices maintain narrower premium to Group I prices, incentivizing blenders to procure more premium-grade base oils.· Europe unapproved/semi-approved Group III price premium to Group I/II base oils holds close to narrowest in at least three months – boosting interest in the premium-grade supplies.· Europe approved Group III price premium to Group I base oils stays high, even if much narrower than three months ago.· Europe approved Group III premium to Group I holds at lower level even with Group III plant maintenance work in Europe and Asia in Q2 2023.· Narrower premium suggests supply is sufficient to meet demand.· Wider Europe domestic price premium to export prices suggests strong domestic demand and tighter surplus supply.· Wider premium is less sustainable if fundamentals deviate from that dynamic.· Wide gap between domestic and export prices can incentivize domestic buyers to hold off when supply is plentiful.· US Group II prices maintain unusually steep gap between light and heavy grades.· Dynamic contrasts with much narrower light-heavy price spreads in Europe/Asia.· Asia Group II light-grade premium to Group I stays wider than usual, partly reflecting unusually low Group I prices.· Asia Group II heavy-grade premium to Group I stays wider than in Q1 2023, holds at levels that are unlikely to incentivize blenders to target more Group I instead.· India’s Group III 8cst base oils imports rise to eight-month high in April as prices fall back to discount to Group II heavy grades for first time this year..Global base oils - week of May 22: Price outlook - margins.Contact us for more information about the data for these stories
