Netherlands’ Sept output falls (Update)

The Netherlands’ base oils and lube production edged down in September, while exports to markets outside Europe surged.

The trend helped to counter a slowdown in lube demand in the country and throughout the region and to limit a supply-build.

The Netherlands’ base oils and lube output of 82,000t in September fell from 98,000t in August to a three-month low, government data showed.

The lower output in September added to a similar trend in a growing number of countries in Europe amid weak demand and falling prices. Refiners focused instead on maximising diesel production.

The lower output and a drop in Europe's imports of premium-grade base oils raised the prospect of limiting a supply-build in the region in the face of slower demand.

The Netherlands' base oils and lube output in September remained much higher than during the second quarter of the year. Production slumped during that period because of factors like plant maintenance work.

A surge in the country’s refinery consumption during the second quarter added to the supply tightness during that period.

There was no refinery consumption in September for the first time this year.

The Netherlands' supply instead remained relatively balanced amid a jump in shipments to markets beyond Europe to a six-month high.

Base oils exports of more than 7,000t to the US in September were the highest in more than three years.

Demand remained firmer and prices much higher in that market compared with Europe.

The Netherlands’ base oils exports to Africa also surged.

The shipment of more than 8,000t of base oils to Nigeria was the largest volume in six months.

Exports of more than 19,000t to South Africa in September were the largest in more than seven years.

The Netherlands’ base oils and lube supply still outpaced demand in September for a third month. But the surplus was relatively small and down by more than half from August.