· Base oils values vs diesel remain high even as they face more downward pressure.· Europe’s Group I base oils premium to diesel falls to lowest in more than two months, still up more than $380/t since 2H Jan 2023..· Europe’s Group II base oils premium to diesel holds steady, down more than $100/t since early May, still up more than $250/t since late Feb 2023.· Europe’s approved Group III base oils premium to diesel stays unusually high even as it edges down to lowest since early 2023.· High base oils values point to firm supply-demand fundamentals, incentivize refiners to maintain or raise production.· Asia’s Group I/II base oils premium to diesel resumes fall; Group II values remain more than $300/t above 2H Jan 2023 levels..· China’s domestic Group II light-grade base oils premium to Shandong diesel prices falls to five-month low, stays higher than usual..· Falling base oils premium to diesel and falling diesel premium to crude could incentivize Chinese refiners to trim run-rates and delay plant restarts or start-up of new capacity.· US light-grade Group II posted price premium to heating oil stays low vs recent months, still relatively firm..Global base oils - week of June 26: Demand outlook
· Base oils values vs diesel remain high even as they face more downward pressure.· Europe’s Group I base oils premium to diesel falls to lowest in more than two months, still up more than $380/t since 2H Jan 2023..· Europe’s Group II base oils premium to diesel holds steady, down more than $100/t since early May, still up more than $250/t since late Feb 2023.· Europe’s approved Group III base oils premium to diesel stays unusually high even as it edges down to lowest since early 2023.· High base oils values point to firm supply-demand fundamentals, incentivize refiners to maintain or raise production.· Asia’s Group I/II base oils premium to diesel resumes fall; Group II values remain more than $300/t above 2H Jan 2023 levels..· China’s domestic Group II light-grade base oils premium to Shandong diesel prices falls to five-month low, stays higher than usual..· Falling base oils premium to diesel and falling diesel premium to crude could incentivize Chinese refiners to trim run-rates and delay plant restarts or start-up of new capacity.· US light-grade Group II posted price premium to heating oil stays low vs recent months, still relatively firm..Global base oils - week of June 26: Demand outlook