The Netherlands’ base oils supply fell in July, adding to a slowdown in Europe’s imports from key sources of Group II base oils.Europe’s supply of the premium-grade base oils duly extended its fall in July, matching the lowest level in fifteen months.Lower supply cushioned the impact of a seasonal slowdown in the region's lube demand during the summer months..Europe’s Group II base oils prices strengthened relative to Group I base oils and other regions during the third quarter, reflecting the more balanced supply-demand fundamentals.The ongoing price-strength suggested that fundamentals for the premium-grade base oils remained relatively firm heading into the fourth quarter of the year..The Netherlands’ base oils output of 84,000 tonnes in July recovered from a fourteen-month low of 63,000 tonnes in June, government data showed.The July volume was still well below typical levels of around 96,000 tonnes/month in the year to June.The Netherlands' base oils consumption category labelled as “transformation in oil products” rose to an eight-month high in July. The higher volume cut further the remaining output available for end-users.A drop in Europe’s imports from key Group II suppliers like the US added to the squeeze on regional supply.Imports fell in July as shipments from the US slid to a six-month low.Europe’s Group II base oils supply, or regional output and imports combined, duly fell to less than 145,000 tonnes in July..The volume slipped from close to 150,000 tonnes in June and matched the lowest level since April 2024.That was when Europe’s sole Group II base oils unit, situated in the Netherlands, was still undergoing maintenance work.Lower Group II supply in July coincided with a regional slowdown in demand ahead of a seasonal dip in lube consumption in the month of August.The fall in lube consumption typically triggers a rise in Europe’s surplus base oils supply and subsequent pressure on base oils prices after the summer holidays.The drop in Europe’s Group II base oils supply showed signs of cushioning the impact of lower demand and curbing any significant build-up of surplus volumes.The region’s firm Group II base oils prices reflected that dynamic.Europe’s Group II base oils prices held firm relative to vacuum gasoil prices and rose strongly versus Group I prices during the third quarter of the year..US July base oil exports to Europe stay low.Europe’s July Group III base oils supply rises.Italy’s August lube demand rises.Base Oil News stories and analysis also available on ICIS platform
