A fall in US base oils exports to Europe to more typical levels in January coincided with a drop in the region’s Group II base oils supply in the first quarter of the year.US base oils exports to Europe surged in the final two months of last year, cushioning a dip in the region’s Group II base oils supply during the fourth quarter.A seasonal slowdown in Europe’s lube consumption at the end of last year and early this year also curbed the impact of lower supply.The slowdown in US base oils exports in January raised the prospect of compounding the drop in supply because of scheduled plant maintenance in Europe during the first quarter of the year.The lower supply boosted the attraction of increasing exports to Europe through the rest of the first quarter of the year.A rise in shipments would help to sustain steady availability in the region at a time when demand typically starts to get a seasonal boost.It would also provide a welcome outlet for surplus supplies in the US market.Europe Group II base oils prices maintained a steep premium to US export prices so far this year, ICIS data showed.The wide price-spread added to the attraction of moving more US shipments to Europe.US exports of 395,000bl (55,600t) to Europe in January fell from more than 556,000bl in December and from more than 1.16mn bl in November, government data showed.Most of the shipments consist of Group II base oils.The November volume was a record high. The December volume was the second highest in five months.The January volume was closer to average levels of 385,000 bl/month in the year to October 2023.Exports fell in January mostly because of a dip in shipments from the district of San Francisco.The slowdown outweighed a rise in shipments from Houston-Galveston to a six-month high..US’ January base oils exports fall
