Europe’s Group III base oils supply rose to a two-year high in March amid a rebound in shipments from the Middle East and pick-up in flows from Asia.Total base oils supply of more than 180,000 tonnes in March rose from less than 120,000 tonnes in each of the previous two months, government data showed.The combined volume of around 210,000 tonnes in January and February was the lowest in at least five years for that two-month period.The March supply by contrast far exceeded typical levels of around 150,000 tonnes/month in 2023.The rise in supply in March coincided with and helped to balance out a drop in regional Group II base oils supply because of scheduled plant maintenance work that month.It also helped to replenish regional stocks of Group III base oils ahead of scheduled maintenance work on a Group III unit in Europe in the second quarter of the year.The rise in shipments to Europe also contrasted with an extended slowdown in Group III base oils cargoes from overseas markets to the US.Rising domestic supply and falling prices for Group III base oils in the US boosted the incentive for overseas refiners to move more shipments to other markets like Europe.US Group III prices fell to a steep discount to Europe Group III prices at the start of the second quarter of the year.The price dynamic added to the attraction of moving more shipments to Europe and raised the prospect of extending any such pick-up in flows over the coming months.Europe’s Group III supply in March got a boost from a rise in shipments from the Middle East to a nineteen-month high.Supplies from Asia rose to a ten-month high on the back of a pick-up in shipments from Indonesia to the highest since last September..US’ March base oils imports fall.Europe Feb Grp III base oil supply stays low
Europe’s Group III base oils supply rose to a two-year high in March amid a rebound in shipments from the Middle East and pick-up in flows from Asia.Total base oils supply of more than 180,000 tonnes in March rose from less than 120,000 tonnes in each of the previous two months, government data showed.The combined volume of around 210,000 tonnes in January and February was the lowest in at least five years for that two-month period.The March supply by contrast far exceeded typical levels of around 150,000 tonnes/month in 2023.The rise in supply in March coincided with and helped to balance out a drop in regional Group II base oils supply because of scheduled plant maintenance work that month.It also helped to replenish regional stocks of Group III base oils ahead of scheduled maintenance work on a Group III unit in Europe in the second quarter of the year.The rise in shipments to Europe also contrasted with an extended slowdown in Group III base oils cargoes from overseas markets to the US.Rising domestic supply and falling prices for Group III base oils in the US boosted the incentive for overseas refiners to move more shipments to other markets like Europe.US Group III prices fell to a steep discount to Europe Group III prices at the start of the second quarter of the year.The price dynamic added to the attraction of moving more shipments to Europe and raised the prospect of extending any such pick-up in flows over the coming months.Europe’s Group III supply in March got a boost from a rise in shipments from the Middle East to a nineteen-month high.Supplies from Asia rose to a ten-month high on the back of a pick-up in shipments from Indonesia to the highest since last September..US’ March base oils imports fall.Europe Feb Grp III base oil supply stays low
