Europe’s Group III base oils supply rose to a three-month high in November as a surge in shipments from the Middle East more than covered for the impact of plant maintenance work in Spain.Total supply of more than 165,000 tonnes in November rose from less than 130,000 tonnes the previous month, government and port data showed.The volume also far exceeded typical supply of around 137,000 tonnes/month over the past year.The rise in supply coincided with a seasonal slowdown in Europe’s lube demand at year-end.The slowdown compounded the sustained drop in the region’s lube consumption.Weak demand and higher supply raised the prospect of a larger build-up of surplus premium-grade volumes at year-end and the start of this year.Europe's Group III base oils prices extended their fall versus feedstock vacuum gasoil prices at the start of the year, pointing to such a dynamic.The region’s supply rose in November even with a fall in shipments from Spain to a one-year low. The drop in shipments coincided with scheduled maintenance work on a Group III plant in the country.The rise in supply instead reflected a surge in shipments from the Middle East to the highest level since August and second-highest level in more than two years.The rise in Group III shipments from the Middle East extended to the US, which also saw a surge in imports from that region in November.Group III base oils supply rose in Europe and the US despite increasingly weak base oils prices and despite a seasonal slowdown in domestic demand in both markets at year-end.The rise in supply in those markets pointed to moves by overseas refiners to clear surplus volumes before year-end.It also suggested that Asia was a less feasible option for the supplies even with relatively firmer lube consumption in that region..US’ November base oils imports rise.Europe Oct Grp III supply stays low.Netherlands’ Oct base oils output rises.Italy’s November lube demand falls
