The Netherlands’ base oils and lube output fell to a nineteen-month low in December, following a similar dip in production two months earlier.Base oils and lube output of 45,000t in December fell from 95,000t the previous month, government data showed.The drop in production cut the country’s output to around 65,000 t/month during the final quarter of the year, down from more than 90,000 t/month in the first nine months of the year.The fall in output cut Europe’s supplies of premium-grade base oils in the fourth quarter of last year.It also preceded major plant maintenance work in the Netherlands that started in the first quarter of this year.Refiners typically build stocks to cover term commitments during scheduled plant maintenance work.The Netherlands’ lower output at the end of last year raised the prospect of curbing the size of a build-up of surplus supplies ahead of the plant shutdown early this year.The dynamic could leave supplies tighter than expected.Europe’s Group II base oils prices eased relative to feedstock prices from the start of this year, ICIS data showed. But they remained well above levels during the third quarter of last year.The premium of Group II heavy-grade prices over Group I prices narrowed in the first two months of this year.But it too remained well above levels throughout the second and third quarters of last year.The drop in the Netherlands’ output in December coincided with a surge in the country’s base oils exports that month to markets outside Europe.Most of the shipments moved to a raft of outlets throughout Africa.The Netherlands’ lower output and rise in shipments to markets outside Europe raised the prospect of cutting further the availability of the country’s supply within the region..US' Dec exports to Europe stay high.Europe’s Dec Group III supply rises
