Italy’s base oils output rose in April from the previous month, contrasting with a slump in consumption to a nineteen-month low.The diverging trends triggered a recovery in the country’s base oils stocks to the highest this year.The rise in output and rebound in stocks coincided with the closure of one of Italy’s two virgin Group I base oils plants.The trend pointed to a build-up of inventories to cushion the plant closure’s impact on Italy’s domestic market.The plant closure instead showed signs of having a more immediate impact on supplies for export markets.A rebound in Europe’s Group I base oils export prices since early March reflected such a dynamic, especially for brightstock.Export prices for the heavy-grade product moved from a discount of more than $250/tonne to domestic prices in mid-January to a premium of more than $80/tonne to domestic prices in second-half April.Italy’s base oils output of 65,100 tonnes in April rose from 59,700 tonnes the previous month, government data showed.It still fell by 20% and for the third time in four months from year-earlier levels.The country’s base oils consumption by contrast fell to 42,100 tonnes in April, from close to 70,000 tonnes the previous month.The volume was the lowest since the third quarter of 2022.Italy’s base oils consumption typically followed the same upward or downward trend as the country’s base oils production.The unusual divergence this time likely reflected a further fall in exports, which amounted to more than 85% of Italy’s base oils consumption in 2023.The divergence also triggered a rebound in the country’s base oils stocks to almost 84,000 tonnes in April, from less than 62,000 tonnes in March..Italy’s April lube demand mixed
