Europe’s Feb Group III supply falls

Europe’s Group III base oils supply fell to a nine-month low in February amid a dip in shipments from Mideast Gulf and southeast Asia.

Group III base oils supply of less than 110,000t in February fell from around 145,000t the previous month, government and port data showed.

Supply had averaged around 139,000 t/month in 2022 and more than 150,000 t/month in 2021.

Tighter European supply coincided with firm demand, especially relative to Group I and Group II base oils.

The region’s Group III prices maintained a steep premium to Group I and Group II prices so far this year, reflecting the tight fundamentals.