· Global base oils prices fall versus feedstock/competing fuel prices as mostly-steady outright prices contrast with rebound in crude/diesel prices, ICIS data shows.· Falling base oils margins incentivize refiners to cut production.· Fob Asia Group II N150/N500 premium to regional gasoil prices extends slide to lowest in almost four months.· Fob Asia Group II premium gets little additional support from N500 prices, which maintain small premium to light-grade prices.· Sliding premium incentivizes refiners to cut output.· Fob Asia Group I light/heavy-neutrals price premium to gasoil falls less steeply; bright stock premium holds firm..· Firmer Group I premium to gasoil contrasts with weakness of Group II, incentivizes refiners to maintain or increase output..· China’s domestic Group II light-grade premium to domestic diesel prices steadies close to highest since early July 2023..· Group II light-grade premium to diesel holds at similar level to year-earlier levels.· Domestic Group II premium to diesel then surged in Feb and March 2023..· Cfr India Group II N70 premium to regional gasoil prices extends fall to lowest since Q3 2023..· Sliding premium incentivizes refiners to redirect very-light grades back into diesel pool..· Europe’s Group I domestic/export price premium to VGO falls to similar levels to year-earlier levels.· Europe’s sliding Group I premium to VGO incentivizes refiners to cut surplus supply.· Europe’s Group III base oils premium to VGO extends fall to lowest since Q2 2022..· US Group II export light/heavy grade prices move to increasingly steep discount to US heating oil prices.· US Group II export heavy-grade premium to VGO falls to lowest since Sep 2020..· Sliding Group II export price premium to heating oil/VGO incentivizes refiners to cut production.· US Group II domestic heavy-grade premium to VGO falls to lowest since 2H 2022.· Lower domestic premium adds to incentive to cut production.· US Group II light-grade posted price premium to VGO falls to lowest since start of Q4 2024.· Lower premium could put pressure on refiners to raise posted prices to maintain margins.· Steep discount of US export prices to domestic prices could complicate any moves to raise posted prices..Global base oils - week of Jan 22: Price outlook - arbitrage.Global base oils - week of Jan 22: Demand outlook
· Global base oils prices fall versus feedstock/competing fuel prices as mostly-steady outright prices contrast with rebound in crude/diesel prices, ICIS data shows.· Falling base oils margins incentivize refiners to cut production.· Fob Asia Group II N150/N500 premium to regional gasoil prices extends slide to lowest in almost four months.· Fob Asia Group II premium gets little additional support from N500 prices, which maintain small premium to light-grade prices.· Sliding premium incentivizes refiners to cut output.· Fob Asia Group I light/heavy-neutrals price premium to gasoil falls less steeply; bright stock premium holds firm..· Firmer Group I premium to gasoil contrasts with weakness of Group II, incentivizes refiners to maintain or increase output..· China’s domestic Group II light-grade premium to domestic diesel prices steadies close to highest since early July 2023..· Group II light-grade premium to diesel holds at similar level to year-earlier levels.· Domestic Group II premium to diesel then surged in Feb and March 2023..· Cfr India Group II N70 premium to regional gasoil prices extends fall to lowest since Q3 2023..· Sliding premium incentivizes refiners to redirect very-light grades back into diesel pool..· Europe’s Group I domestic/export price premium to VGO falls to similar levels to year-earlier levels.· Europe’s sliding Group I premium to VGO incentivizes refiners to cut surplus supply.· Europe’s Group III base oils premium to VGO extends fall to lowest since Q2 2022..· US Group II export light/heavy grade prices move to increasingly steep discount to US heating oil prices.· US Group II export heavy-grade premium to VGO falls to lowest since Sep 2020..· Sliding Group II export price premium to heating oil/VGO incentivizes refiners to cut production.· US Group II domestic heavy-grade premium to VGO falls to lowest since 2H 2022.· Lower domestic premium adds to incentive to cut production.· US Group II light-grade posted price premium to VGO falls to lowest since start of Q4 2024.· Lower premium could put pressure on refiners to raise posted prices to maintain margins.· Steep discount of US export prices to domestic prices could complicate any moves to raise posted prices..Global base oils - week of Jan 22: Price outlook - arbitrage.Global base oils - week of Jan 22: Demand outlook