Europe’s Group III base oils supply jumped to a multi-year high in August amid a simultaneous rise in imports from the Middle East and Asia, combined with steady regional output.The rise in supply contrasted with a sharp fall in Europe’s lube consumption as a seasonal slowdown compounded a year-on-year contraction.Rising supply and falling demand raised the prospect of leaving blenders and distributors with healthy stocks.Total supply of close to 200,000 tonnes in August rose from less than 145,000 tonnes the previous month, government data showed.The last time that monthly supply got close to the 200,000-tonne level was in the first quarter of 2022.The rise in supply in the third quarter of the year contrasted with tighter availability in the first few months of 2024.The rise in supply coincided with Europe’s increasingly firm Group III base oils prices relative to other regions compared with the first few months of the year. The trend made Europe an increasingly attractive destination for supplies from overseas refiners.Europe’s Group III prices moved to a steep premium to US prices from the start of the second quarter of the year. They had been at a discount to US prices during the previous seven months. Their premium to FOB Asia prices widened steadily from June, climbing in September to the highest this year.Widening price premiums coincided with higher imports.Europe’s Group III base oils shipments from the Middle East rose in August to a two-year high.Imports from Asia were the highest in fifteen months. The rise in shipments contrasted with a slump in US Group III base oils imports in August.Lower prices and weak demand curbed the attraction of moving supplies to that market.Europe’s Group III prices were firmer. But the region’s lube demand was also increasingly weak.Rising supply and weak demand raised the prospect of a build-up of surplus Group III volumes in Europe during the third quarter of the year.Any such buildup would help to cushion the impact of maintenance work on a Group III unit in the region from the end of the third quarter. .Netherlands’ July base oils output rises.UK’s July base oils output falls.US’ Aug base oils imports mixed
Europe’s Group III base oils supply jumped to a multi-year high in August amid a simultaneous rise in imports from the Middle East and Asia, combined with steady regional output.The rise in supply contrasted with a sharp fall in Europe’s lube consumption as a seasonal slowdown compounded a year-on-year contraction.Rising supply and falling demand raised the prospect of leaving blenders and distributors with healthy stocks.Total supply of close to 200,000 tonnes in August rose from less than 145,000 tonnes the previous month, government data showed.The last time that monthly supply got close to the 200,000-tonne level was in the first quarter of 2022.The rise in supply in the third quarter of the year contrasted with tighter availability in the first few months of 2024.The rise in supply coincided with Europe’s increasingly firm Group III base oils prices relative to other regions compared with the first few months of the year. The trend made Europe an increasingly attractive destination for supplies from overseas refiners.Europe’s Group III prices moved to a steep premium to US prices from the start of the second quarter of the year. They had been at a discount to US prices during the previous seven months. Their premium to FOB Asia prices widened steadily from June, climbing in September to the highest this year.Widening price premiums coincided with higher imports.Europe’s Group III base oils shipments from the Middle East rose in August to a two-year high.Imports from Asia were the highest in fifteen months. The rise in shipments contrasted with a slump in US Group III base oils imports in August.Lower prices and weak demand curbed the attraction of moving supplies to that market.Europe’s Group III prices were firmer. But the region’s lube demand was also increasingly weak.Rising supply and weak demand raised the prospect of a build-up of surplus Group III volumes in Europe during the third quarter of the year.Any such buildup would help to cushion the impact of maintenance work on a Group III unit in the region from the end of the third quarter. .Netherlands’ July base oils output rises.UK’s July base oils output falls.US’ Aug base oils imports mixed
