Europe’s Group III base oils supply edged up in February as a pick-up in flows from the Middle East and Asia outweighed a dip in shipments from Spain.Total supply of more than 135,000 tonnes in February rose from more than 130,000 tonnes the previous month, government and port data showed..The volume was slightly higher than typical supplies of close to 130,000 tonnes/month in 2024.The steady volumes in the first two months of the year highlighted Europe’s diverse sources for Group III base oils that included regional as well as more distant suppliers.The large number of sources cushioned the impact of a change in supply from any one of the refiners because of factors like plant maintenance work.The same dynamic raised the prospect of limiting the impact on Europe of Group III plant maintenance work in the Middle East at the start of the second quarter of the year.Imports from the UAE and Bahrain accounted for around 18% of Europe’s Group III base oils supply in the first two months of the year and 16% of the total in 2024.The share contrasted with the US, where base oils imports from the UAE and Bahrain accounted for around 24% of its total Group III imports in the first two months of the year and last year.The higher share of imports exposed the US to the prospect of a larger impact from plant maintenance work in the Middle East early in the second quarter of the year.The US’ lack of any significant domestic Group III base oils production capacity magnified the impact of any such changes to supply from overseas sources.The country's unusually volatile monthly imports of Group III base oils since mid-2024 highlighted one repercussion of any such changes to supply. The extended shipment time for cargoes from the Middle East to Europe could curb further the impact of plant maintenance work on that region.Any subsequent slowdown in shipments would likely materialize at the end of the second quarter of the year, when Europe’s regional demand typically starts to face a seasonal slowdown.Several shipments from the Middle East were meanwhile scheduled to reach Europe in the coming month..US’ February base oils imports fall.S Korea’s March exports to US edge down
