Germany’s December lube/base oil exports slip

Germany’s lubricant and base oil exports fell in December to an 18-month low amid a sharp drop in shipments of process oils.

Total exports of 115,930t in December fell from 125,700t the previous month to the lowest since June 2020, government data showed.

Even with the slowdown, total exports of 1.64mn t in 2021 rose from 1.49mn t the previous year to the highest in at least six years.

The country’s exports typically account for well over half of its lube and base oils output.

The pick-up in lube and base oil exports in 2021 mirrored a rebound in overseas demand as economies revived following sharp slowdowns in 2020.

But the rebound in shipments began to slow from the start of the second quarter of last year. The slowdown coincided with lower lube and base oils output at a time when global prices were surging in response to tight availability and strong demand.

Base oil prices eased and availability improved in the second half of last year. But another round of Covid-19-related restrictions in Europe again impacted demand.