Europe’s Group III base oils supply rose in August to its highest level this year amid a pick-up in shipments from the Middle East and southeast Asia.Supply showed signs of edging lower in September amid a slowdown in shipments from the UAE and northeast Asia. Supply then showed signs of improving in October.Europe’s total Group III base oils supply came to around 150,000 tonnes in August, government and shipping data showed..The volume rose slightly from the previous month to the highest since last November.Supply got a boost from the arrival of a large shipment from the UAE that helped to counter a slump in flows from Bahrain.That dynamic showed signs of reversing in September and October, with a strong pick-up in shipments from Bahrain..The pick-up in flows would follow a sustained slowdown in Europe’s imports from the UAE and Bahrain since the start of the second quarter of the quarter of the year.The slowdown coincided with maintenance-work on the Group III units in both of the Middle East countries during that period.A slowdown in supplies from South Korea in August could have continued over the following months amid a dip in exports from the northeast Asian country to Europe during the third quarter of the year.Supplies from Spain held firm in August and at a similar level in September. Shipments remained steady so far in October.Europe’s Group III base oils prices climbed versus feedstock prices and rose strongly versus prices in Asia and especially US since the second quarter of the year.The firmer price-differentials pointed to stronger supply-demand fundamentals and boosted the incentive for overseas refiners to move more shipments to Europe.Europe’s Group III price-differentials held firm even with signs of steady-to-higher Group III base oils supply in the region.The dynamic suggested that demand was an increasingly important factor supporting the price-strength..Europe’s July Group III base oils supply rises.S Korea's Sept base oils exports rise.Base Oil News stories and analysis also available on ICIS platform
