The Netherlands’ base oils output fell to a ten-month low in February, while its exports to markets outside Europe rose to an eight-month high.Lower output and higher exports cut supply of premium-grade base oils for the regional market at a time when demand faced a seasonal slowdown during the winter months.Any extension of the drop in supply over the following months would coincide with a seasonal pick-up in demand.The Netherlands’ base oils output of 79,000 tonnes in February fell from more than 100,000 tonnes in three of the previous four months, government data showed.The February volume was the lowest since April 2024, when the country’s sole base oils unit underwent scheduled maintenance work. Output then began a sustained surge over the following nine months.Base oils imports from key Group II producers rose to a four-month high in February, cushioning the impact of lower regional output.The Netherlands’ output and imports combined, a proxy for Europe’s Group II supply, duly held steady in February from the previous month at more than 140,000 tonnes..The volume was still the lowest in ten months and coincided with an even steeper dip in Europe’s Group I base oils supply in February.Lower base oils supply partially cushioned the impact of weak regional lube demand and limited the size of any build-up of surplus volumes during the first quarter of the year.Europe’s Group II base oils prices rebounded versus feedstock vacuum gasoil prices since the start of the second quarter. They also rose strongly versus Group I base oils and stayed unusually firm relative to Group III base oils.The relative outperformance of Group II base oils prices in recent weeks pointed to increasingly strong supply-demand fundamentals even as concerns about the outlook keep pressure on regional lube demand..Europe’s Feb Group III supply edges up.UK’s February base oils output falls.Italy’s March lube demand rises
