US base oils exports to Europe fell in December to their lowest in almost a decade, slashing supply of premium-grade base oils from the region’s key overseas supplier.The drop in shipments coincided with lower base oils production in key markets like Italy and Spain in the fourth quarter of last year..Italy's November base oils output falls.Europe also faced a halt in imports of Russian base oils from the beginning of February.Supply from sources like US and the Mediterranean region may have fallen in response to weak European demand and sliding base oils prices.The size of the drop in supply may have been even larger than the drop in demand.Weak consumption and blenders’ delayed moves to replenish stocks outweighed any signs of lower-than-usual supply during the first few weeks of this year.Any supply tightness would become more apparent when blenders resume stock-building in preparation for the seasonal rise in demand from the end of the first quarter of the year.US base oils exports to Europe showed signs of rising strongly in January from the unusually low volumes in December.Exports of 83,000bl (11,690t) to Europe in December fell from an already lower-than-usual 415,710bl the previous month, government data showed..Exports of 1.04mn bl to Europe in the fourth quarter of the year fell by 27pc from year-earlier levels.The quarterly volume was the lowest since the second quarter of 2020, when lockdowns throughout Europe slashed demand.The fall in shipments coincided with a drop in total shipments from the district of Mobile in Alabama in December, and a pause in shipments from the district of San Francisco.The two districts are the main sources for US base oils exports to Europe.Total US base oils exports of 5.15mn bl to Europe in 2022 fell by 6pc from 5.49mn bl the previous year.Exports fell as a 20pc slump in shipments to Europe during second-half 2022 more than reversed a rise in supplies in the first half of the year..Europe’s November lube demand falls
