· Global base oils prices extend steep slide versus crude and diesel.· Strength of diesel prices contrasts with and compounds pressure on base oils values.· Moves by some refiners in US to raise posted prices highlight pressure from squeezed margins.· Sliding margins incentivize refiners to cut base oils output, boost diesel output.· Europe’s Group I price premium to diesel falls more than $350/t since late June to lowest since Jan 2023.· Europe’s Group II price premium to diesel falls close to $200/t since late June to lowest since early March 2023..· Asia’s Group I/II prices fall by more than $250/t since late June, move to even steeper discount to diesel.· Asia’s Group I discount to diesel widens to lowest since Nov 2022; Group II discount widens to lowest since Jan 2023..· China’s domestic Group II light-grade base oil premium to Shandong diesel prices extends steep fall to lowest since Oct 2022..· Sliding base oils values and firm diesel values incentivize Chinese refiners to extend shutdowns, delay restart of shut-in capacity and pause start-up of new capacity.· US Group II light-grade posted price premium to diesel mixed as some refiners raise posted prices.· US Group II posted price premium to diesel stays close to lowest since January even with higher posted prices..Global base oils - week of July 31: Demand outlook
· Global base oils prices extend steep slide versus crude and diesel.· Strength of diesel prices contrasts with and compounds pressure on base oils values.· Moves by some refiners in US to raise posted prices highlight pressure from squeezed margins.· Sliding margins incentivize refiners to cut base oils output, boost diesel output.· Europe’s Group I price premium to diesel falls more than $350/t since late June to lowest since Jan 2023.· Europe’s Group II price premium to diesel falls close to $200/t since late June to lowest since early March 2023..· Asia’s Group I/II prices fall by more than $250/t since late June, move to even steeper discount to diesel.· Asia’s Group I discount to diesel widens to lowest since Nov 2022; Group II discount widens to lowest since Jan 2023..· China’s domestic Group II light-grade base oil premium to Shandong diesel prices extends steep fall to lowest since Oct 2022..· Sliding base oils values and firm diesel values incentivize Chinese refiners to extend shutdowns, delay restart of shut-in capacity and pause start-up of new capacity.· US Group II light-grade posted price premium to diesel mixed as some refiners raise posted prices.· US Group II posted price premium to diesel stays close to lowest since January even with higher posted prices..Global base oils - week of July 31: Demand outlook
