US base oils exports to Europe rebounded to a six-month high in January at a time when the region faced slack demand and surplus supplies..Europe’s December lube demand falls.The surge in shipments from the US to Europe added to those supplies.Most of the US’ base oils shipments to Europe consist of Group II base oils.Europe’s base oils prices extended their fall in the first two months of this year because of weak supply-demand fundamentals.The region’s Group II base oils prices fell more steeply than Group I and Group III prices, reflecting the product’s even weaker fundamentals.The lower prices narrowed the premium of Group II to Group I base oils. They also widened their discount to Group III base oils.The price dynamics boosted the attraction for blenders using Group I or Group III base oils to use Group II base oils instead.The surge in supplies from the US to Europe in January was also unlikely to repeat itself in February.Base oils exports of more than 597,000bl (84,110t) to Europe in January were the highest since last July, government data showed..Excluding a surge in US shipments to Europe in the four months to last July, the January volume was the highest since the beginning of 2019.The surge in supplies contrasted with a slump in the US' December shipments to Europe to their lowest in almost a decade..US’ Dec base oils exports to Europe fall.Exports rose in January amid a rebound in shipments from the districts of Mobile in Alabama and from San Francisco. A less regular flow of supplies from the district of Port Arthur added to the volume.Signs of a slowdown in February-loading shipments from the US to Europe would coincide with a seasonal pick-up in lube demand in the region from the end of the first quarter of the year.Increasingly competitive Group II prices relative to Group I and Group III prices in Europe added to the prospect of firmer demand and more balanced market fundamentals..US’ January base oils exports rebound
US base oils exports to Europe rebounded to a six-month high in January at a time when the region faced slack demand and surplus supplies..Europe’s December lube demand falls.The surge in shipments from the US to Europe added to those supplies.Most of the US’ base oils shipments to Europe consist of Group II base oils.Europe’s base oils prices extended their fall in the first two months of this year because of weak supply-demand fundamentals.The region’s Group II base oils prices fell more steeply than Group I and Group III prices, reflecting the product’s even weaker fundamentals.The lower prices narrowed the premium of Group II to Group I base oils. They also widened their discount to Group III base oils.The price dynamics boosted the attraction for blenders using Group I or Group III base oils to use Group II base oils instead.The surge in supplies from the US to Europe in January was also unlikely to repeat itself in February.Base oils exports of more than 597,000bl (84,110t) to Europe in January were the highest since last July, government data showed..Excluding a surge in US shipments to Europe in the four months to last July, the January volume was the highest since the beginning of 2019.The surge in supplies contrasted with a slump in the US' December shipments to Europe to their lowest in almost a decade..US’ Dec base oils exports to Europe fall.Exports rose in January amid a rebound in shipments from the districts of Mobile in Alabama and from San Francisco. A less regular flow of supplies from the district of Port Arthur added to the volume.Signs of a slowdown in February-loading shipments from the US to Europe would coincide with a seasonal pick-up in lube demand in the region from the end of the first quarter of the year.Increasingly competitive Group II prices relative to Group I and Group III prices in Europe added to the prospect of firmer demand and more balanced market fundamentals..US’ January base oils exports rebound
