· Global base oils prices hold firm or edge up vs diesel and feedstock prices as outright prices extend gains, ICIS data shows.· Global base oils prices remain unusually low vs diesel/feedstock prices.· Global base oils values remain low as high diesel/feedstock prices counter most of the rise in outright base oils prices.· Base oils values and diesel values hold at levels that incentivize refiners to produce more middle distillates and to trim base oils production.· Base oils values fell to steeper discounts to diesel in US and Asia than in Europe in Q3 2023.· Base oils values vs diesel rebound more steeply in US and Asia than in Europe.· Trend could start to ease incentive for refiners in US and Asia to minimize base oils production. · Fob Asia Group I light/heavy neutrals maintain discount to gasoil.· Fob Asia Group II light/heavy neutrals maintain small premium to gasoil.· Fob Asia Group II light-grade differential to gasoil bottoms out in early-Aug 2023, recovers by close to $90/t since then..· Domestic China Group II light-grade premium to Shandong diesel rebounds to highest in more than two months.· Base oils premium remains in narrow range, close to lowest since Q4 2022..· Low base oils premium and firm domestic diesel premium to crude oil incentivize refiners to prioritise diesel production.· China’s base oils premium to diesel rebounded in Q4 2022, coinciding with seasonal pick-up in demand and ahead of removal of zero-Covid policies from late-2022.· China’s base oils premium to diesel so far shows little sign of repeating that rebound.· Europe export Group I light-grade prices maintain discount to gasoil, heavy-neutrals barely maintain premium to gasoil.· Domestic Europe Group I light-grade premium to VGO steadies close to five-month low.· Domestic Europe Group II light-grade premium to VGO steadies at lowest since Q1 2022..· Domestic Europe Group III light-grade premium to VGO steadies at lowest since Q2 2022.· Europe premium-grade premium to VGO/gasoil falls more sharply than Group I base oils, incentivizes suppliers to limit volumes for European market.· US Group II light-grade export prices revert to close to parity with heating oil prices, vs steep discount in late-Aug 2023.· Recovery fails to extend to US Group III domestic prices, whose premium to heating oil holds close to lowest in almost a year.· US base oils price premium to VGO rises..· Size of increase in base oils premium to VGO stays small, keeping premium close to lowest since 1H 2022. .Global base oils - week of Sep 25: Demand outlook
· Global base oils prices hold firm or edge up vs diesel and feedstock prices as outright prices extend gains, ICIS data shows.· Global base oils prices remain unusually low vs diesel/feedstock prices.· Global base oils values remain low as high diesel/feedstock prices counter most of the rise in outright base oils prices.· Base oils values and diesel values hold at levels that incentivize refiners to produce more middle distillates and to trim base oils production.· Base oils values fell to steeper discounts to diesel in US and Asia than in Europe in Q3 2023.· Base oils values vs diesel rebound more steeply in US and Asia than in Europe.· Trend could start to ease incentive for refiners in US and Asia to minimize base oils production. · Fob Asia Group I light/heavy neutrals maintain discount to gasoil.· Fob Asia Group II light/heavy neutrals maintain small premium to gasoil.· Fob Asia Group II light-grade differential to gasoil bottoms out in early-Aug 2023, recovers by close to $90/t since then..· Domestic China Group II light-grade premium to Shandong diesel rebounds to highest in more than two months.· Base oils premium remains in narrow range, close to lowest since Q4 2022..· Low base oils premium and firm domestic diesel premium to crude oil incentivize refiners to prioritise diesel production.· China’s base oils premium to diesel rebounded in Q4 2022, coinciding with seasonal pick-up in demand and ahead of removal of zero-Covid policies from late-2022.· China’s base oils premium to diesel so far shows little sign of repeating that rebound.· Europe export Group I light-grade prices maintain discount to gasoil, heavy-neutrals barely maintain premium to gasoil.· Domestic Europe Group I light-grade premium to VGO steadies close to five-month low.· Domestic Europe Group II light-grade premium to VGO steadies at lowest since Q1 2022..· Domestic Europe Group III light-grade premium to VGO steadies at lowest since Q2 2022.· Europe premium-grade premium to VGO/gasoil falls more sharply than Group I base oils, incentivizes suppliers to limit volumes for European market.· US Group II light-grade export prices revert to close to parity with heating oil prices, vs steep discount in late-Aug 2023.· Recovery fails to extend to US Group III domestic prices, whose premium to heating oil holds close to lowest in almost a year.· US base oils price premium to VGO rises..· Size of increase in base oils premium to VGO stays small, keeping premium close to lowest since 1H 2022. .Global base oils - week of Sep 25: Demand outlook
