Europe’s Group III base oils supply edged down in May as a pick-up in shipments from Asia cushioned the impact of plant maintenance work in the region during the second quarter.The steady supply coincided with a seasonal pick-up in demand for premium-grade base oils.The region’s Group III base oils prices stayed under pressure relative to other grades and other regions during the second quarter of the year even with the firmer supply-demand fundamentals.Demand now faced the prospect of a seasonal slowdown during the third quarter of the year.Supply was likely to get support from a pick-up in regional output following the completion of plant maintenance work, as well as signs of steadier flows from Asia.Europe’s total Group III base oils supply of around 140,000 tonnes in May edged down from more than 145,000 tonnes the previous month, government data showed.Supply also fell in May for the fourth time in five months from year-earlier levels amid a sustained drop in shipments from the Middle East and South Korea.That dynamic could change over the coming months in the face of weaker US demand for overseas shipments of Group III base oils and lower prices for the supplies compared with Europe.Europe’s imports from the UAE already rose strongly in April and May, following a slump in shipments from the country during the previous five months.Any sustained pick-up in shipments from that market and from Asia would add to supplies during the third quarter, at a time when demand typically faced a seasonal slowdown..Europe’s April Group III supply falls.Italy’s May lube demand falls
