US base oils exports to Europe surged to a record-high in November, removing a swathe of supplies from the US market at the end of last year.The surge in shipments instead transferred those volumes to Europe, where Group II base oils supply fell in October to a thirteen-month low.US base oils exports of more than 1.15mn bl (164,000t) to Europe in November rose from less than 200,000bl the previous month, government data showed.The volume rose from typical levels of around 410,000 bl/month in the first ten months of the year and exceeded total exports to Europe during the previous three months combined.The additional shipments from the US raised the prospect of reversing any Group II supply-tightness in Europe and leaving healthy availability in the region at the start of this year.Europe also faced the challenge of dealing with the speed and size of the pick-up in shipments.Europe’s tighter Group II supply at the start of the fourth quarter of last year coincided with a sustained rise in Group II prices versus other base oils grades and versus feedstock prices, ICIS data showed.The premium of Europe Group II prices over US prices also widened sharply during the fourth quarter, leaving the arbitrage wide open..US’ Nov base oils exports rise
US base oils exports to Europe surged to a record-high in November, removing a swathe of supplies from the US market at the end of last year.The surge in shipments instead transferred those volumes to Europe, where Group II base oils supply fell in October to a thirteen-month low.US base oils exports of more than 1.15mn bl (164,000t) to Europe in November rose from less than 200,000bl the previous month, government data showed.The volume rose from typical levels of around 410,000 bl/month in the first ten months of the year and exceeded total exports to Europe during the previous three months combined.The additional shipments from the US raised the prospect of reversing any Group II supply-tightness in Europe and leaving healthy availability in the region at the start of this year.Europe also faced the challenge of dealing with the speed and size of the pick-up in shipments.Europe’s tighter Group II supply at the start of the fourth quarter of last year coincided with a sustained rise in Group II prices versus other base oils grades and versus feedstock prices, ICIS data showed.The premium of Europe Group II prices over US prices also widened sharply during the fourth quarter, leaving the arbitrage wide open..US’ Nov base oils exports rise
