Europe’s Group II base oils supply fell to a nineteen-month low in December as a slump in the Netherlands’ output outweighed a pick-up in imports from the US.The drop in supply compounded lower-than-usual volumes in October and November and contrasted with a recovery in Europe’s Group III base oils supply at the end of the year.The region's Group II supply faced the prospect of staying tighter than usual early this year because of scheduled plant maintenance in the Netherlands.The country is home to Europe’s sole virgin Group II base oils plant.The trend increased Europe’s reliance on supplies from overseas markets and from the US especially to cover its requirements.The region's total supply of little more than 100,000t in December fell from around 140,000t the previous month, government data showed.The slowdown cut total supply to 360,000t in the fourth quarter of the year, down from close to 500,000t during the previous three months and from almost 430,000t during the fourth quarter of 2022.Europe’s firm Group II base oils prices reflected the tighter supply, ICIS data showed.The region’s Group II prices rose strongly relative to Group I and Group III prices during the fourth quarter of last year, then held onto most of those gains so far this year.Europe’s Group II prices also rose strongly relative to US export and domestic prices from the fourth quarter of last year.The wide premium of Europe Group II prices over US prices incentivized refiners in that market to extend a wave of shipments to Europe that began late last year..Europe’s Dec Group III supply rises.Netherlands’ Dec base oils output falls.US' Dec exports to Europe stay high
Europe’s Group II base oils supply fell to a nineteen-month low in December as a slump in the Netherlands’ output outweighed a pick-up in imports from the US.The drop in supply compounded lower-than-usual volumes in October and November and contrasted with a recovery in Europe’s Group III base oils supply at the end of the year.The region's Group II supply faced the prospect of staying tighter than usual early this year because of scheduled plant maintenance in the Netherlands.The country is home to Europe’s sole virgin Group II base oils plant.The trend increased Europe’s reliance on supplies from overseas markets and from the US especially to cover its requirements.The region's total supply of little more than 100,000t in December fell from around 140,000t the previous month, government data showed.The slowdown cut total supply to 360,000t in the fourth quarter of the year, down from close to 500,000t during the previous three months and from almost 430,000t during the fourth quarter of 2022.Europe’s firm Group II base oils prices reflected the tighter supply, ICIS data showed.The region’s Group II prices rose strongly relative to Group I and Group III prices during the fourth quarter of last year, then held onto most of those gains so far this year.Europe’s Group II prices also rose strongly relative to US export and domestic prices from the fourth quarter of last year.The wide premium of Europe Group II prices over US prices incentivized refiners in that market to extend a wave of shipments to Europe that began late last year..Europe’s Dec Group III supply rises.Netherlands’ Dec base oils output falls.US' Dec exports to Europe stay high
