Italy’s base oils output fell to a four-month low in November, reversing a gradual recovery in production during the second half of the year.The fall in output coincided with a seasonal slowdown in base oils and lube demand in Europe at year-end.The drop in supply raised the prospect of limiting the size of a supply-build at the end of last year and early this year.A spot shipment of Group I base oils of Italian origin was sold in recent weeks at a steep discount to Europe base oils prices, ICIS data showed.The sale of the cargo contrasted with a wave of surplus shipments from Italy in late 2022 and early last year.Italy’s base oils output of around 45,000t in November fell from more than 80,000t the previous month, government data showed.The volume fell to the lowest since July, when the country’s base oils production began to recover after plant maintenance work that began in May.The drop in output coincided with firm base oils exports in November, with another large shipment moving to Singapore that month.Lower output and firm demand trimmed Italy’s base oils stocks to a fifteen-month low of less than 80,000t in November. The volume was down from more than 105,000t during the same month a year earlier. .Italy’s December lube demand rises
