US base oils exports to Europe stayed low in July, curbing the pace of any build-up of surplus premium-grade supplies at a time when regional demand faced a seasonal slowdown.Total base oils exports to Europe came to 385,000 barrels (54,000 tonnes) in July, government data showed.The volume edged up from 377,000 barrels the previous month but fell by 12% and for the fourth time in five months from year-earlier levels.Most of the supplies consisted of Group II base oils..The lower export volumes raised the prospect of keeping Europe’s premium-grade base oils supply-demand fundamentals more balanced during the third quarter of the year.The Netherlands’ base oils output already fell to a fourteen-month low in June.Any extension of the country's dip in output would tighten further Europe’s premium-grade base oils supplies.Europe’s Group II base oils prices rose relative to Group I base oils during the third quarter, pointing to such a dynamic..More balanced supply in Europe contrasted with the prospect of a larger surplus in the US during the third quarter.The country’s total base oils and lube exports fell to a twenty-one-month low in July amid a slump in shipments to Mexico especially.The Latin American country is a key outlet for US spot shipments.A rise in US exports to such outlets in June helped to cushion a dip in shipments to key markets for term volumes that month, slowing the pace of a fall in total exports.Europe is a key outlet for term supplies.An extension of the low US export volumes to Europe in July did little to cushion the slump in shipments to key markets for spot supplies.The trade flows raised the prospect of Europe’s more balanced Group II base oils fundamentals contrasting with a faster rise in US supplies.US Group II base oils prices weakened relative to Europe prices during the third quarter of the year, pointing to such a dynamic..US’ July base oils exports fall.US’ July base oils imports slip.Netherlands’ June base oils output falls.Base Oil News stories and analysis also available on ICIS platform
