Europe’s Group II base oils supply stayed lower than usual in November as a slump in shipments from the US countered a rebound in production in the Netherlands.The lower supply coincided with and cushioned the impact of a seasonal slowdown in the region’s base oils and lube demand at year-end.Europe’s Group II base oils prices reflected the more balanced fundamentals.Group II prices rose relative to other grades and relative to feedstock prices during the fourth quarter of the year, ICIS data showed.A subsequent drop in Group II base oils values this year followed an unusually large surge in US base oils exports to Europe at year-end, boosting supply.Total supply recovered to around 140,000t in November, government and shipping data showed.The volume rose from a thirteen-month low of less than 120,000t in October. It was still down from more than 160,000 t/month in the third quarter of last year.Supply of less than 260,000t in October and November combined fell from around 310,000t during the same two-month period in 2022.Supply dropped even as Group II base oils accounted for a growing share of Europe’s base oils market in 2023.The grade’s larger market share boosted the impact of the drop in supply, at a time when the sustained fall in Europe’s lube demand showed signs of bottoming out..Europe’s Nov Group III supply falls
Europe’s Group II base oils supply stayed lower than usual in November as a slump in shipments from the US countered a rebound in production in the Netherlands.The lower supply coincided with and cushioned the impact of a seasonal slowdown in the region’s base oils and lube demand at year-end.Europe’s Group II base oils prices reflected the more balanced fundamentals.Group II prices rose relative to other grades and relative to feedstock prices during the fourth quarter of the year, ICIS data showed.A subsequent drop in Group II base oils values this year followed an unusually large surge in US base oils exports to Europe at year-end, boosting supply.Total supply recovered to around 140,000t in November, government and shipping data showed.The volume rose from a thirteen-month low of less than 120,000t in October. It was still down from more than 160,000 t/month in the third quarter of last year.Supply of less than 260,000t in October and November combined fell from around 310,000t during the same two-month period in 2022.Supply dropped even as Group II base oils accounted for a growing share of Europe’s base oils market in 2023.The grade’s larger market share boosted the impact of the drop in supply, at a time when the sustained fall in Europe’s lube demand showed signs of bottoming out..Europe’s Nov Group III supply falls
