Europe’s Group III base oils supply held steady in June from the previous month but fell for the fifth time in six months from year-earlier levels.The slowdown showed signs of extending a sharp drop in Europe’s base oils supply this year, especially of premium-grade base oils.Total Group III base oils supply of more than 130,000 tonnes in June was similar to the previous month but down 4% from year-earlier levels, government data showed.The slowdown cut the region’s total Group III base oils supply to around 810,000 tonnes in the first half of the year.The volume was down 14% from close to 950,000 tonnes during the same period last year.The contraction was smaller than the more-than 25% drop in Europe’s Group II base oils supply in the first five months of the year.But it far outpaced the 2% fall in the region’s Group I base oils supply during the first five months.Europe’s increasingly firm Group I, Group II and Group III base oils prices relative to other markets reflected the region’s tighter supply this year.But the strength of Group I prices relative to Group II and Group III prices, even with a smaller drop in Group I supply, pointed to still-firm demand for the grade.The weakness of Europe’s Group III prices relative to Group I and Group II prices by contrast suggested that supply of the product continued to outpace demand even as supply fell.The dynamic could complicate any moves to target Europe with more Group III base oils shipments in response to weaker fundamentals and prices in the US for the premium-grade supplies. Europe’s Group III base oils supply held firm in June as a pick-up in shipments from Spain and South Korea countered a drop in supplies from the Middle East and from Indonesia..Netherlands’ May base oils output rises.Italy’s June base oils output stays rangebound.UK’s May base oils output edges down.S Korea’s June exports rise to Latam, fall to US
Europe’s Group III base oils supply held steady in June from the previous month but fell for the fifth time in six months from year-earlier levels.The slowdown showed signs of extending a sharp drop in Europe’s base oils supply this year, especially of premium-grade base oils.Total Group III base oils supply of more than 130,000 tonnes in June was similar to the previous month but down 4% from year-earlier levels, government data showed.The slowdown cut the region’s total Group III base oils supply to around 810,000 tonnes in the first half of the year.The volume was down 14% from close to 950,000 tonnes during the same period last year.The contraction was smaller than the more-than 25% drop in Europe’s Group II base oils supply in the first five months of the year.But it far outpaced the 2% fall in the region’s Group I base oils supply during the first five months.Europe’s increasingly firm Group I, Group II and Group III base oils prices relative to other markets reflected the region’s tighter supply this year.But the strength of Group I prices relative to Group II and Group III prices, even with a smaller drop in Group I supply, pointed to still-firm demand for the grade.The weakness of Europe’s Group III prices relative to Group I and Group II prices by contrast suggested that supply of the product continued to outpace demand even as supply fell.The dynamic could complicate any moves to target Europe with more Group III base oils shipments in response to weaker fundamentals and prices in the US for the premium-grade supplies. Europe’s Group III base oils supply held firm in June as a pick-up in shipments from Spain and South Korea countered a drop in supplies from the Middle East and from Indonesia..Netherlands’ May base oils output rises.Italy’s June base oils output stays rangebound.UK’s May base oils output edges down.S Korea’s June exports rise to Latam, fall to US
