Global base oils market snapshot – Week of 15 June

Author Iain Pocock, Editor

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

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

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

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

Rising US prices narrow arbitrage to Europe

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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

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

Arbitrage to India turns more marginal

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