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 turn more mixed relative to feedstock/competing fuel prices.</li><li>Light-grade margins face more pressure in Asia than in other markets.</li><li>Dynamic boosts incentive for adjustments in output in that market, points to more balanced fundamentals in other markets.</li></ul>

Global base oils prices turn more mixed relative to feedstock/competing fuel prices.Light-grade margins face more pressure in Asia than in other markets.Dynamic boosts incentive for adjustments in output in that market, points to more balanced fundamentals in other markets.

Global base oils margins outlook: Week of 28 July

<ul><li>Asia’s base oils demand could get support as buyers focus on locking in supply to cover requirements during final weeks of Q3 2025.</li><li>Dynamic would highlight disconnect between typical seasonal slowdown in lube demand in month of August and need to secure base oils supplies to meet pick-up in demand at end of third quarter.</li><li>Expectations of sufficient supply could prompt buyers to maintain balanced inventories rather than to seek larger stocks.</li></ul>

Asia’s base oils demand could get support as buyers focus on locking in supply to cover requirements during final weeks of Q3 2025.Dynamic would highlight disconnect between typical seasonal slowdown in lube demand in month of August and need to secure base oils supplies to meet pick-up in demand at end of third quarter.Expectations of sufficient supply could prompt buyers to maintain balanced inventories rather than to seek larger stocks.

Asia base oils demand outlook: Week of 28 July

HK/China Equity Long-Short

Osbert Tang, CFA

Thematic (Sector/Industry)

<ul>
<li>Although lower interest rates will benefit the technology sector more, many investors will still opt for high-yield stocks to protect their income stream.</li>
<li>
<a href="https://www.smartkarma.com/entities/cnooc-ltd" target="_blank" data-smartkarma-citation="entities:175:1" rel="noopener">CNOOC Ltd (883 HK)</a>, <a href="https://www.smartkarma.com/entities/hang-lung-properties-ltd" target="_blank" data-smartkarma-citation="entities:49:1" rel="noopener">Hang Lung Prop (101 HK)</a>, <a href="https://www.smartkarma.com/entities/china-hongqiao-group-ltd" target="_blank" data-smartkarma-citation="entities:1909:1" rel="noopener">China Hongqiao (1378 HK)</a>, <a href="https://www.smartkarma.com/entities/hengan-international-group-co-ltd" target="_blank" data-smartkarma-citation="entities:29:1" rel="noopener">Hengan Intl Group (1044 HK)</a>, and <a href="https://www.smartkarma.com/entities/henderson-land-development-co" target="_blank" data-smartkarma-citation="entities:376:1" rel="noopener">Henderson Land (12 HK)</a> are the top 5 high-yield HSI constituents.</li>
<li>Mainland China banks no longer made the list, but <a href="https://www.smartkarma.com/entities/industrial-and-commercial-bank-of-china-limited" target="_blank" data-smartkarma-citation="entities:1119:1" rel="noopener">ICBC (H) (1398 HK)</a> and <a href="https://www.smartkarma.com/entities/bank-of-china-ltd-h" target="_blank" data-smartkarma-citation="entities:656:1" rel="noopener">Bank Of China Ltd (H) (3988 HK)</a> remain attractive at 5.7% and 5.6%, respectively.</li>
</ul>


Although lower interest rates will benefit the technology sector more, many investors will still opt for high-yield stocks to protect their income stream.

CNOOC Ltd (883 HK), Hang Lung Prop (101 HK), China Hongqiao (1378 HK), Hengan Intl Group (1044 HK), and Henderson Land (12 HK) are the top 5 high-yield HSI constituents.
Mainland China banks no longer made the list, but ICBC (H) (1398 HK) and Bank Of China Ltd (H) (3988 HK) remain attractive at 5.7% and 5.6%, respectively.


HK Strategy: Time to Revisit the Yield Story

<ul><li>Global base oils prices face more pressure versus feedstock/competing fuel prices, especially for light grades, and especially in Asia.</li><li>Heavy-grade price-premium to feedstock/competing fuel prices also faces more pressure in Asia than in other markets.</li><li>Dynamic increases prospect of any adjustments in output taking place in Asia ahead of other markets.</li></ul>

Global base oils prices face more pressure versus feedstock/competing fuel prices, especially for light grades, and especially in Asia.Heavy-grade price-premium to feedstock/competing fuel prices also faces more pressure in Asia than in other markets.Dynamic increases prospect of any adjustments in output taking place in Asia ahead of other markets.

Global base oils margins outlook: Week of 21 July

<ul><li>Asia’s Group II heavy-grade base oils cargo price-premium to US export prices widens in H1 July, further complicating arbitrage to Americas.</li><li>Asia's Group II light-grade price-discount to US export prices narrows, complicating arbitrage to Americas.</li><li>Asia’s firm Group II base oils prices contrast with steep price-discount to US export prices in Q2-Q3 2024.</li></ul>

Asia’s Group II heavy-grade base oils cargo price-premium to US export prices widens in H1 July, further complicating arbitrage to Americas.Asia's Group II light-grade price-discount to US export prices narrows, complicating arbitrage to Americas.Asia’s firm Group II base oils prices contrast with steep price-discount to US export prices in Q2-Q3 2024.

Global base oils arb outlook: Week of 21 July

China

PetroChina Company Limited operates as an oil and gas company. The Company offers crude oil and oil products exploration, development, production and marketing. PetroChina also markets petrochemical products and derivative chemicals.

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PetroChina (601857 CH)

Global base oils margins outlook: Week of 28 July

Global base oils prices turn more mixed relative to feedstock/competing fuel prices. Light-grade margins face more pressure in Asia than in other...

Base Oil News

Asia base oils demand outlook: Week of 28 July

Asia’s base oils demand could get support as buyers focus on locking in supply to cover requirements during final weeks of Q3 2025. Dynamic would...

Base Oil News

HK Strategy: Time to Revisit the Yield Story

High-yield stocks like CNOOC, Hang Lung Prop and Henderson can protect income stream despite lower interest rates favouring the tech sector. ICBC...

Osbert Tang, CFA

Global base oils margins outlook: Week of 21 July

Global base oils prices face more pressure versus feedstock/competing fuel prices, especially for light grades, and especially in...

Base Oil News

Global base oils arb outlook: Week of 21 July

Asia’s Group II heavy-grade base oils cargo price-premium to US export prices widens in H1 July, further complicating arbitrage to...

Base Oil News

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Global base oils margins outlook: Week of 28 July

Global base oils prices turn more mixed relative to feedstock/competing fuel prices. Light-grade margins face more pressure in Asia than in other...

Base Oil News

Asia base oils demand outlook: Week of 28 July

Asia’s base oils demand could get support as buyers focus on locking in supply to cover requirements during final weeks of Q3 2025. Dynamic would...

Base Oil News

HK Strategy: Time to Revisit the Yield Story

​High-yield stocks like CNOOC, Hang Lung Prop and Henderson can protect income stream despite lower interest rates favouring the tech sector. ICBC...

Osbert Tang, CFA

Global base oils margins outlook: Week of 21 July

Global base oils prices face more pressure versus feedstock/competing fuel prices, especially for light grades, and especially in...

Base Oil News

Global base oils arb outlook: Week of 21 July

Asia’s Group II heavy-grade base oils cargo price-premium to US export prices widens in H1 July, further complicating arbitrage to...

Base Oil News

High-yield stocks like CNOOC, Hang Lung Prop and Henderson can protect income stream despite lower interest rates favouring the tech sector. ICBC...