· Cfr India Group II import cargo prices strengthen vs cfr northeast Asia/fob Asia prices, ICIS data shows..· Firmer cfr India prices vs fob Asia prices contrast with weakening India price premium to Asia prices over past month..· Cfr India Group II light-grade price premium to US export prices steadies at lowest level since Feb 2023..· Cfr India light-grade price-premium to US export prices had been weakening since early June..· Steadier-to-firmer cfr India price premium to Asia/US prices points to firmer fundamentals that could make arbitrage to India more feasible.· Steady-to-firm India price premium contrasts with weak cfr northeast Asia premium to fob Asia prices..· Cfr northeast Asia Group II prices barely revert to premium to fob Asia Group II prices.· Fob Asia Group II light-grade price discount to domestic Chinese prices narrows further, after widening for more than a month through to mid-July..· Price weakness suggests China has sufficient domestic supplies to cover expected seasonal pick-up in demand in coming weeks.· Price weakness could suggest concern that China’s seasonal pick-up in demand could be weaker than expected, prompting buyers to continue to hold off replenishing stocks..· Fob Asia Group II light-grade prices maintain small premium to US export prices..· Weak Chinese demand, small cfr India premium to Asia prices, closed arbitrage for light grades from Asia to US, and firm diesel values incentivize Asia refiners to minimize light-grade base oils production..Global base oils - week of Aug 28: Price outlook - margins
· Cfr India Group II import cargo prices strengthen vs cfr northeast Asia/fob Asia prices, ICIS data shows..· Firmer cfr India prices vs fob Asia prices contrast with weakening India price premium to Asia prices over past month..· Cfr India Group II light-grade price premium to US export prices steadies at lowest level since Feb 2023..· Cfr India light-grade price-premium to US export prices had been weakening since early June..· Steadier-to-firmer cfr India price premium to Asia/US prices points to firmer fundamentals that could make arbitrage to India more feasible.· Steady-to-firm India price premium contrasts with weak cfr northeast Asia premium to fob Asia prices..· Cfr northeast Asia Group II prices barely revert to premium to fob Asia Group II prices.· Fob Asia Group II light-grade price discount to domestic Chinese prices narrows further, after widening for more than a month through to mid-July..· Price weakness suggests China has sufficient domestic supplies to cover expected seasonal pick-up in demand in coming weeks.· Price weakness could suggest concern that China’s seasonal pick-up in demand could be weaker than expected, prompting buyers to continue to hold off replenishing stocks..· Fob Asia Group II light-grade prices maintain small premium to US export prices..· Weak Chinese demand, small cfr India premium to Asia prices, closed arbitrage for light grades from Asia to US, and firm diesel values incentivize Asia refiners to minimize light-grade base oils production..Global base oils - week of Aug 28: Price outlook - margins