Squeezed margins, changing arbitrage spreads and firmer export prices reflect expectations that base oil prices and demand have bottomed out.
Asia: Fob Asia Group II N150 versus four-week diesel falls by more than $100/t since first-half April to lowest level since February.
Asian base oils rebounds after steep drop
Asia: Cfr India Group II N150 reverts to premium to cfr northeast Asia N150 for first time since early March.
Indian prices outpace China as demand increases
Europe: Domestic Europe Group I SN 150 premium to fob export Europe Group I SN 150 falls below $125/t, lowest level since mid-April and down from record high of more than $170/t in May.
Firmer export prices narrow arbitrage to reimport supplies
Europe: Fca ARA Group II N150 premium to US Gulf coast Group II N100 falls to less than $345/t, narrowest since mid-April.
Rising US prices narrow arbitrage to Europe
US: US Gulf coast domestic Group III 4cst premium to Group II N100 narrows for first time since early February.
Sustained Group III price strength slows
US: US Gulf coast Group II N100 discount to cfr India N150 narrows but still wider than usual.
Arbitrage to India turns more marginal
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