· China’s domestic Group II base oils price discount narrows sharply vs imported supplies and vs Group I prices.· Outperformance of China’s domestic Group II prices follows changes in country’s consumption tax rules.· Europe Group I price competitiveness improves vs Group II, pointing to weakening demand and/or improving Group I availability. · Europe unapproved Group III premium to Group II prices continues to narrow, providing blenders with additional supply options.· Europe unapproved Group III discount to approved Group III base oils continues to widen.· Trend boosts attraction for blenders to minimize consumption of Group III supplies with approvals.· Asia Group I heavy-neutrals prices continue to weaken vs light grades.· Asia Group I light-grades extend strong recovery vs Group II light grades, after Group I prices fell to unusually steep discount to Group II.· Asia Group III 4cst price premium to Group I prices stays wide even as it edges narrower.· US Group II heavy-grade prices maintain steep premium to light grades, contrasting with Europe and Asia..Global base oils - week of July 10: Price outlook - margins
· China’s domestic Group II base oils price discount narrows sharply vs imported supplies and vs Group I prices.· Outperformance of China’s domestic Group II prices follows changes in country’s consumption tax rules.· Europe Group I price competitiveness improves vs Group II, pointing to weakening demand and/or improving Group I availability. · Europe unapproved Group III premium to Group II prices continues to narrow, providing blenders with additional supply options.· Europe unapproved Group III discount to approved Group III base oils continues to widen.· Trend boosts attraction for blenders to minimize consumption of Group III supplies with approvals.· Asia Group I heavy-neutrals prices continue to weaken vs light grades.· Asia Group I light-grades extend strong recovery vs Group II light grades, after Group I prices fell to unusually steep discount to Group II.· Asia Group III 4cst price premium to Group I prices stays wide even as it edges narrower.· US Group II heavy-grade prices maintain steep premium to light grades, contrasting with Europe and Asia..Global base oils - week of July 10: Price outlook - margins