Global Editor, Base Oil News

Iain Pocock

Global Editor

Global Base Oils and Lubricants Markets

Base Oil News

Base Oil News focuses on the interplay between fundamentals and prices in the global base oils and lubricants markets.

Baseoilnews.com combines daily, weekly and monthly base oils and lubes fundamentals data from every region of the world to build the most comprehensive and up-to-date global picture of the state of the market.

The data and analysis provide key tools to understand current market developments and opportunities and to anticipate how the market is likely to behave in the coming months.

Base oils producers, lube blenders and consumers can then better plan accordingly.

Baseoilnews.com analyses and publishes market news and data every day as it breaks.

Commodities

<ul><li>Global base oils prices hold at levels versus feedstock and competing fuel prices that sustain incentive for refiners to maintain or raise output.</li><li>Margins hold firm even at time of year when surplus supply typically starts to build amid seasonal slowdown in demand.</li><li>Firm margins could point to supply-demand fundamentals that are tighter than usual for time of year.</li></ul>

Global base oils prices hold at levels versus feedstock and competing fuel prices that sustain incentive for refiners to maintain or raise output.Margins hold firm even at time of year when surplus supply typically starts to build amid seasonal slowdown in demand.Firm margins could point to supply-demand fundamentals that are tighter than usual for time of year.

Global base oils margins outlook: Week of 25 August

<ul><li>Europe Group I brightstock price stays unusually firm relative to light and heavy neutrals so far in Q3 2025.</li><li>Europe Group I brightstock price stays unusually firm versus feedstock vacuum gasoil price so far in Q3 2025.</li><li>Europe Group I export brightstock price maintains steep premium to imported cargo prices in markets like India.</li></ul>

Europe Group I brightstock price stays unusually firm relative to light and heavy neutrals so far in Q3 2025.Europe Group I brightstock price stays unusually firm versus feedstock vacuum gasoil price so far in Q3 2025.Europe Group I export brightstock price maintains steep premium to imported cargo prices in markets like India.

Global base oils arb outlook: Week of 25 August

<ul><li>Asia’s base oils price-premium to Singapore gasoil holds firm at levels that incentivize refiners to maintain or raise output.</li><li>Firm margins point to still-tight supply-demand fundamentals.</li><li>Margins hold firm even with prospect of rise in surplus base oils supply in Asia in Q3 2025 in response to pick-up in output and slowdown in demand.</li></ul>

Asia’s base oils price-premium to Singapore gasoil holds firm at levels that incentivize refiners to maintain or raise output.Firm margins point to still-tight supply-demand fundamentals.Margins hold firm even with prospect of rise in surplus base oils supply in Asia in Q3 2025 in response to pick-up in output and slowdown in demand.

Asia base oils supply outlook: Week of 25 August

<ul><li>Asia’s base oils demand likely to stay cautious even with round of stock-replenishment in coming weeks.</li><li>Asia’s lube demand likely to rise over coming months after bottoming out in month of August.</li><li>Lower demand in August likely triggers pick-up in surplus supplies in Asia-Pacific region.</li></ul>

Asia’s base oils demand likely to stay cautious even with round of stock-replenishment in coming weeks.Asia’s lube demand likely to rise over coming months after bottoming out in month of August.Lower demand in August likely triggers pick-up in surplus supplies in Asia-Pacific region.

Asia base oils demand outlook: Week of 25 August

Derivatives and Quantitative Strategist

Gaudenz Schneider

Equity Bottom-Up

<ul>
<li>
Context: The <a href="https://www.smartkarma.com/entities/idemitsu-kosan-co-ltd" target="_blank" data-smartkarma-citation="entities:109:1" rel="noopener">Idemitsu Kosan (5019 JP)</a> vs. <a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a> price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.</li>
<li>
 Highlight: Going long <a href="https://www.smartkarma.com/entities/eneos-holdings-inc" target="_blank" data-smartkarma-citation="entities:638:1" rel="noopener">ENEOS Holdings (5020 JP)</a> and short <a href="https://www.smartkarma.com/entities/idemitsu-kosan-co-ltd" target="_blank" data-smartkarma-citation="entities:109:1" rel="noopener">Idemitsu Kosan (5019 JP)</a> targets a 5% return.</li>
<li>
Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.</li>
</ul>



Context: The Idemitsu Kosan (5019 JP) vs. ENEOS Holdings (5020 JP) price ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.

 Highlight: Going long ENEOS Holdings (5020 JP) and short Idemitsu Kosan (5019 JP) targets a 5% return.

Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.


ENEOS (5020 JP) Vs Idemitsu Kosan (5019 JP): Japan Energy Pair Hits Stat Arb Trigger

Japan

Idemitsu Kosan Co., Ltd. explores, imports, refines, and distributes petroleum and its related products.  The Company also manufactures and sells petrochemical products.

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Idemitsu Kosan (5019 JP)

Global base oils margins outlook: Week of 25 August

Global base oils prices hold at levels versus feedstock and competing fuel prices that sustain incentive for refiners to maintain or raise...

Base Oil News

Global base oils arb outlook: Week of 25 August

Europe Group I brightstock price stays unusually firm relative to light and heavy neutrals so far in Q3 2025. Europe Group I brightstock price...

Base Oil News

Asia base oils supply outlook: Week of 25 August

Asia’s base oils price-premium to Singapore gasoil holds firm at levels that incentivize refiners to maintain or raise output. Firm margins point...

Base Oil News

Asia base oils demand outlook: Week of 25 August

Asia’s base oils demand likely to stay cautious even with round of stock-replenishment in coming weeks. Asia’s lube demand likely to rise over...

Base Oil News

ENEOS (5020 JP) Vs Idemitsu Kosan (5019 JP): Japan Energy Pair Hits Stat Arb Trigger

5% target return as Japanese energy peers hit a fresh pair trade trigger. Essential for quantitative traders seeking mean-reversion opportunities.

Gaudenz Schneider

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