US base oils exports to Europe fell to an eight-month low in February, coinciding with the start of maintenance work on the region's sole virgin Group II base oils unit.The simultaneous slowdown in exports to Europe and drop in its Group II base oils output raised the prospect of keeping regional supply of the premium-grade product tighter than usual throughout the first quarter of the year.Europe’s Group II base oils prices still weakened relative to feedstock vacuum gasoil prices in the first three months of the year, ICIS data showed.The pressure on prices pointed to weak demand that outweighed signs of tighter supply.US base oils exports of 195,000 barrels (27,400 tonnes) to Europe in February fell from 395,000 barrels in January and from more than 550,000 barrels in December, government data showed.Exports to Europe averaged close to 490,000 barrels/month in 2023.US shipments to Europe fell despite the region's increasingly wide Group II price premium over US export prices during the first two months of the year.The slowdown in shipments also coincided with the shutdown of Europe’s sole virgin Group II base oils unit from February for scheduled maintenance work.US exports fell mostly because of a pause in shipments from the district of San Francisco to Europe for the first time since October.The pause in shipments coincided with a slump in total US base oils exports from San Francisco that month.Firmer US base oils export prices in recent weeks and the restart of the Group II base oils unit in the Netherlands cut the attraction of moving more US base oils to Europe in the second quarter of the year.At the same time, a seasonal rise in lube consumption and signs of tightening Group I base oils supply in Europe raised the prospect of boosting demand for Group II base oils..US’ February base oils exports improve.Global base oils arb outlook: Week of 15 April
US base oils exports to Europe fell to an eight-month low in February, coinciding with the start of maintenance work on the region's sole virgin Group II base oils unit.The simultaneous slowdown in exports to Europe and drop in its Group II base oils output raised the prospect of keeping regional supply of the premium-grade product tighter than usual throughout the first quarter of the year.Europe’s Group II base oils prices still weakened relative to feedstock vacuum gasoil prices in the first three months of the year, ICIS data showed.The pressure on prices pointed to weak demand that outweighed signs of tighter supply.US base oils exports of 195,000 barrels (27,400 tonnes) to Europe in February fell from 395,000 barrels in January and from more than 550,000 barrels in December, government data showed.Exports to Europe averaged close to 490,000 barrels/month in 2023.US shipments to Europe fell despite the region's increasingly wide Group II price premium over US export prices during the first two months of the year.The slowdown in shipments also coincided with the shutdown of Europe’s sole virgin Group II base oils unit from February for scheduled maintenance work.US exports fell mostly because of a pause in shipments from the district of San Francisco to Europe for the first time since October.The pause in shipments coincided with a slump in total US base oils exports from San Francisco that month.Firmer US base oils export prices in recent weeks and the restart of the Group II base oils unit in the Netherlands cut the attraction of moving more US base oils to Europe in the second quarter of the year.At the same time, a seasonal rise in lube consumption and signs of tightening Group I base oils supply in Europe raised the prospect of boosting demand for Group II base oils..US’ February base oils exports improve.Global base oils arb outlook: Week of 15 April
