Global products supplier and distributor Penthol has begun selling Group I base oils on a spot and term basis from storage tanks in the Netherlands.The availability of additional Group I supplies in northwest Europe followed a slump in base oil shipments of Russian origin to the region in recent months..Europe's July base oils imports from Russia mixed.The drop in supplies of Russian origin had raised concern about sufficient availability of Group I base oils in Europe.Regional demand for Group I base oils has been slowing for several years as blenders used more premium-grade base oils in their lubricant formulations instead. But some products still required Group I base oils.Supplies of Russian origin had previously covered a portion of those requirements..More base oils from Russia instead moved to other outlets like Turkey in recent months.The supplies attracted strong demand in Turkey partly because of their competitive price compared with Group I base oils of European origin..Turkey's July Group I imports hold firm.The trend cut demand in Turkey for Group I base oils originating from Europe.Some of those supplies were now instead being made available in northwest Europe.The move reflected some of the unexpected consequences of the change in trade flows caused by the drop in shipments from Russia to Europe.It also raised the prospect of covering some of the Group I requirements that blenders had previously covered with supplies of Russian origin.Penthol has already begun selling Group I supplies of European origin from several storage tanks in Rotterdam. It planned to double its storage capacity to 8,000mᶟ (7,090t) by the end of the year.The terminal was equipped to load trucks and barges.Penthol also planned to start offering Group II supplies before the end of the year..US’ July base oils exports to Europe rise
