The Netherlands’ base oils output fell to a fourteen-month low in June, contrasting with a rise in Europe’s imports from key suppliers of Group II base oils.The higher imports cushioned the impact of lower output, leaving Europe’s Group II supply in a relatively narrow range that it held in throughout most of this year.The steady supply highlighted the multiple sources of Group II base oils for the European market.The diverse number and location of sources also helped to balance out the impact of a marked change in supply from any one of the sources.Stability of feedstock supply is a key requirement and attraction for lubricants blenders.Signs of increasingly stable supply of the premium-grade base oils duly added to their attraction..The Netherlands’ base oils output came to 63,000 tonnes in June, government data showed..The volume fell from 96,000 tonnes the previous month to the lowest since April 2024, when the Netherlands’ and Europe’s sole Group II unit was restarting following scheduled maintenance work.Lower output contrasted with a rise in Europe’s base oils imports from key Group II suppliers to more than 85,000 tonnes in June.The volume was the highest since May 2024, the month after the base oils unit in the Netherlands restarted after the shutdown.Europe’s total Group II supply, or regional output and imports combined, still fell back to less than 150,000 tonnes in June, from close to 170,000 tonnes the previous month..But the May volume was the outlier, with supply reverting in June to more typical levels during the first four months of the year.Supply returned to its narrow range in June even as the Netherlands’ share fell to less than 45% of the total, down from close to 60% in the first five months of the year.The rise in imports made up the difference.The pick-up in imports coincided with increasingly firm Europe Group II base oils prices relative to prices in the US and Asia.The wide price-gap boosted the attraction of lining up more arbitrage shipments to Europe.The premium of Europe Group II prices over US and Asia prices widened even more during the third quarter of the year, keeping the arbitrage wide open..US June base oils/lube exports fall.S Korea’s July base oils exports stay low.Netherlands’ May base oils output rises.Europe June Group III supply holds firm.Italy’s July lube demand rises.Base Oil News stories and analysis also available on ICIS platform
