EMEA Base Oil Price Report

By Ray Masson

Many base oil suppliers find themselves between a rock and a hard place this week as efforts to hike selling prices have been thwarted by falling demand and plentiful avails.

Markets have started to move longer, making it difficult for sellers to cover increases in raw material costs. The delta between API Group I solvent neutral 500 and diesel prices in Europe is the smallest for years and has prompted some refiners to shift production from base oil to diesel.

Some refiners who are able to produce bright stock have tweaked the system to increase quantities of this grade, but traditional export markets for large quantities of this grade are weak at this time since receivers can turn to alternative sources. read more

Today’s Economic Events

07:00 GE SEP Producer Price Index (MoM) exp: 0.3% prev: 0.3%
15:00 EC OCT A Euro-Zone: Consumer Confidence exp: -3.1 prev: -2.9

General Market Comment 22.10.18

US indices closed mixed on Monday. Shares in the Banks (-2.55%), Diversified Financials (-1.84%) and Real Estate (-1.42%) sectors were under pressure while shares in the Semiconductors & Semiconductor Equipment (+0.96%), Retailing (+0.86%) and Software & Services (+0.85%) sectors closed in the green zone. On the economic data front, the Chicago Federal National Activity index was diminished to 0.17 in September (estimated 0.21) from 0.27 in the previous month. The S&P 500 (2,755.83) remains at levels below both its 20d moving average (2,845.93 – negative slope) and 50d moving average (2,867.86 – negative slope). read more

Commodity Closing – Europe/Oil-Gas Majors 22.10.18

Oil futures were little changed on Monday after paring earlier losses despite Saudi Arabia’s pledge to raise crude production to a record high, two weeks before U.S. sanctions potentially choke off Iranian supplies.

General Market Comment

US indices closed mixed to finish the week on Friday. Shares in the Consumer Durables & Apparel (-2.88%), Semiconductors & Semiconductor Equipment (-1.84%) and Health Care Equipment & Services (-1.27%) sectors were under pressure while shares in the Household & Personal Products (+5.51%), Food, Beverage & Tobacco (+1.64%) and Utilities (+1.58%) sectors gained traction. On the economic data front, existing home sales declined by 3.4% MoM to 5.15M units in September (estimated 5.29M units) from 5.33M units in August. The S&P 500 (2,767.78) remains at levels below both its 20d moving average (2,854.10 – negative slope) and 50d moving average (2,869.41 – negative slope). read more

Commodity Closing – Europe/Oil-Gas Majors 19.10.18

Oil prices rose on Friday on signs of surging demand in China, the world’s second-biggest oil consumer, although the market was heading for a second week of losses on rising U.S. inventories and concern that trade wars were curbing economic activity.

Today’s Economic Events

09:30 UK SEP Public Finances (PSNCR) (B GBP) exp: NA prev: 3.1
09:30 UK SEP Public Sector Net Borrowing (B GBP) exp: 4.3 prev: 5.9
15:00 US SEP Existing Home Sales (M) exp: 5.3 prev: 5.3

General Market Comment

US indices closed lower on Thursday as the Dow and Nasdaq finished lower for the 8th time in 11 sessions. Shares in the Media (-2.42%), Retailing (-2.37%) and Automobiles & Components (-2.34%) sectors dragged the market lower. On the economic data front, initial jobless claims reached 210k in week ended October 13th (estimated 211k) from 215k in the previous week. Continuing claims declined to 1.64M in week ended October 6th (forecasted 1.663M) compared to 1.653M a week earlier. The Philadelphia Federal Business Outlook index survey slightly diminished to 22.2 in October (expected 20) from 22.9 in September. The Bloomberg consumer comfort index improved to 60.8 in week ended October 14th vs. 59.5 in the prior week. Finally, the Leading Index advanced by 0.5% in September, aligned with expectations, compared to 0.4% in August. The S&P 500 (2,768.78) remains at levels below both its 20d moving average (2,862.20 – negative slope) and 50d moving average (2,871.13 – negative slope). read more

Commodity Closing – Europe/Oil-Gas Majors 18.10.18

Oil prices pared losses on Thursday as U.S. stocks bounced off session lows and a report showed a smaller-than-expected build in crude inventory levels at the U.S. oil storage hub Cushing.

Today’s Economic Events

07:00 GE SEP Wholesale Price Index (MoM) exp: NA prev: 0.3%
09:30 UK SEP Retail Sales (MoM) exp: -0.5% prev: 0.3%
13:30 US OCT Philadelphia Fed. exp: 20.9 prev: 22.9
13:30 US W40 Initial Jobless Claims (k) exp: 212 prev: 214
15:00 US SEP Leading Indicators exp: 0.5% prev: 0.4%