Europe’s Group II base oils supply fell to a thirteen-month low in October amid a synchronized drop in regional production and imports.The lower volume raised the prospect of limiting the size of any build-up of surplus Group II supplies in the region during the fourth quarter of the year.The lower supply coincided with a rise in Europe’s Group II base oils prices relative to Group I and Group III base oils during the fourth quarter, ICIS data showed.Total Group II supply fell to less than 115,000t in October, government data showed.The volume fell from more than 162,000t in each of the previous three months.Even with the slowdown, supply of 1.46mn t in the first ten months of the year remained up 6pc from 1.37mn t during the same period a year earlier.Most of the supplies originated from the Netherlands and the US.The rise in Group II supplies throughout last year helped to cover for a drop in availability of Group I base oils in the region.Any sustained drop in Group II volumes would complicate such a move.Such a scenario was unlikely in view of Europe’s firm Group II base oils prices relative to other regions and the plentiful availability of Group II base oils in those other regions.Supplies of US origin already showed signs of recovering sharply by the end of the year..Netherlands’ Oct base oils supply lags demand.US’ Oct base oils exports to Europe fall
Europe’s Group II base oils supply fell to a thirteen-month low in October amid a synchronized drop in regional production and imports.The lower volume raised the prospect of limiting the size of any build-up of surplus Group II supplies in the region during the fourth quarter of the year.The lower supply coincided with a rise in Europe’s Group II base oils prices relative to Group I and Group III base oils during the fourth quarter, ICIS data showed.Total Group II supply fell to less than 115,000t in October, government data showed.The volume fell from more than 162,000t in each of the previous three months.Even with the slowdown, supply of 1.46mn t in the first ten months of the year remained up 6pc from 1.37mn t during the same period a year earlier.Most of the supplies originated from the Netherlands and the US.The rise in Group II supplies throughout last year helped to cover for a drop in availability of Group I base oils in the region.Any sustained drop in Group II volumes would complicate such a move.Such a scenario was unlikely in view of Europe’s firm Group II base oils prices relative to other regions and the plentiful availability of Group II base oils in those other regions.Supplies of US origin already showed signs of recovering sharply by the end of the year..Netherlands’ Oct base oils supply lags demand.US’ Oct base oils exports to Europe fall