· Europe Group II base oils prices stay unusually competitive vs Group I prices, like in Asia.· Trend of more competitive Group II prices extends to three months.· Stronger rise in Europe’s Group I prices vs Group II prices since start of year points to structurally tighter-availability of Group I, more plentiful availability of Group II.· Structural change in Group I supply fundamentals and more competitive Group II prices add to incentive for blenders to use more premium grades instead of Group I.· Europe unapproved Group III premium to Group I narrows further; approved Group III premium stays wide. · Europe approved Group III premium to unapproved Group III base oils stays wide.· Trend reflects improving availability of unapproved Group III base oils, compensates for loss of premium-grade supplies of Russian origin.· Trend incentivizes blenders to maximise consumption of unapproved Group III base oils.· Asia Group II light-grade premium to Group I stays wider than usual; heavy-grade premium stays narrow.· Trend reflects more the weakness of Group I light grades rather than strength of Group II.· China’s domestic Group I light grades maintain steep premium to Group II base oils..Global base oils – week of June 19: Price outlook – margins
· Europe Group II base oils prices stay unusually competitive vs Group I prices, like in Asia.· Trend of more competitive Group II prices extends to three months.· Stronger rise in Europe’s Group I prices vs Group II prices since start of year points to structurally tighter-availability of Group I, more plentiful availability of Group II.· Structural change in Group I supply fundamentals and more competitive Group II prices add to incentive for blenders to use more premium grades instead of Group I.· Europe unapproved Group III premium to Group I narrows further; approved Group III premium stays wide. · Europe approved Group III premium to unapproved Group III base oils stays wide.· Trend reflects improving availability of unapproved Group III base oils, compensates for loss of premium-grade supplies of Russian origin.· Trend incentivizes blenders to maximise consumption of unapproved Group III base oils.· Asia Group II light-grade premium to Group I stays wider than usual; heavy-grade premium stays narrow.· Trend reflects more the weakness of Group I light grades rather than strength of Group II.· China’s domestic Group I light grades maintain steep premium to Group II base oils..Global base oils – week of June 19: Price outlook – margins