US base oils exports to Europe rose to a three-month high in March, boosting shipments to the region ahead of a seasonal pick-up in demand in the second quarter of the year.Base oils exports of 481,000 barrels (68,000 tonnes) to Europe in March rose from less than 200,000 barrels the previous month and by 3% from year-earlier levels, government data showed.The rise in shipments in March preceded slightly the completion of Group II plant maintenance work in Europe at the start of the second quarter of the year.The pick-up in regional output and in shipments from the US raised the prospect of a strong rebound in Europe’s Group II base oils supply during the second quarter of the year.The rise in volumes contrasted with unusually tight Group II base oils supply in Europe during the first few months of the year.A seasonal slowdown in regional demand at that time cushioned the impact of the lower supply.A seasonal pick-up in demand during the second quarter of the year made timely the subsequent recovery in supply.Improved availability of supply also provided regional blenders with a ready alternative in place of increasingly tight availability of Group I base oils in Europe.Competitive prices for Group II base oils versus Group I supplies added to the attraction of using more Group II base oils in lubricant formulations.Base oils shipments accounted for more than 84% of the US' total base oils and engine oils exports to Europe in the first quarter of the year.The high share contrasted with US exports to other markets like Mexico.Engine oils exports accounted for more than half of the US’ total base oils and lube exports to the Latin American country since the middle of last year.The trend suggested that any moves by US refiners to clear surplus volumes were directed more at markets like Mexico rather than Europe. .US March base oils exports to Mexico rangebound.US’ March base oils exports stay lower
US base oils exports to Europe rose to a three-month high in March, boosting shipments to the region ahead of a seasonal pick-up in demand in the second quarter of the year.Base oils exports of 481,000 barrels (68,000 tonnes) to Europe in March rose from less than 200,000 barrels the previous month and by 3% from year-earlier levels, government data showed.The rise in shipments in March preceded slightly the completion of Group II plant maintenance work in Europe at the start of the second quarter of the year.The pick-up in regional output and in shipments from the US raised the prospect of a strong rebound in Europe’s Group II base oils supply during the second quarter of the year.The rise in volumes contrasted with unusually tight Group II base oils supply in Europe during the first few months of the year.A seasonal slowdown in regional demand at that time cushioned the impact of the lower supply.A seasonal pick-up in demand during the second quarter of the year made timely the subsequent recovery in supply.Improved availability of supply also provided regional blenders with a ready alternative in place of increasingly tight availability of Group I base oils in Europe.Competitive prices for Group II base oils versus Group I supplies added to the attraction of using more Group II base oils in lubricant formulations.Base oils shipments accounted for more than 84% of the US' total base oils and engine oils exports to Europe in the first quarter of the year.The high share contrasted with US exports to other markets like Mexico.Engine oils exports accounted for more than half of the US’ total base oils and lube exports to the Latin American country since the middle of last year.The trend suggested that any moves by US refiners to clear surplus volumes were directed more at markets like Mexico rather than Europe. .US March base oils exports to Mexico rangebound.US’ March base oils exports stay lower
