Finland’s Dec base oil exports ease

Finland’s base oil exports extended a gradual slowdown in December, even as they remained well above levels in the first half of last year.

Exports of 29,490t in December fell from more than 35,000t the previous month, EU data showed. But shipments of 210,000t in second-half 2021 were up by more than 30pc from 160,350t during the first six months of the year.

Even with that slowdown, exports of more than 370,000t in 2021 were 7pc higher than the previous year.

The slowdown in first-half 2021 coincided with an unusually heavy round of plant maintenance work in Europe and Asia-Pacific that affected premium-grade base oils production.

The drop in production coincided with a strong rebound in global demand for premium-grade base oils. The supply-demand disconnect triggered a surge in prices for those supplies that far outpaced the rise in Group I base oils.

The extreme supply tightness has eased in recent months. Even so, prices for those premium grades have remained at elevated levels, reflecting the still-firm fundamentals.