Netherlands’ Aug supply matches demand

The Netherlands’ base oils supply barely exceeded demand in August at a time of year when a seasonal slowdown in lube demand can trigger a build-up of surplus supplies.

The country’s base oils and lube supply, or domestic production and imports combined, fell to 277,000t in August, down from close to 310,000t the previous month, government data showed.

Base oils and lube demand of 274,000t in August rose from less than 270,000t the previous month.

The surplus of supply over demand fell to 3,000t in response, from 40,000t in July.

The trend of a smaller supply-build in the third quarter of the year showed signs of extending to other markets in Europe.

Regional blenders also kept their own lubricants and feedstock inventories at lower levels throughout this year.

Refiners’ lower supply surplus and blenders’ lower stocks raised the prospect of steadier supply-demand dynamics in the region during the fourth quarter of the year.