The Netherlands’ base oils output stayed higher-than-usual in January for an eighth month, at a time when regional demand faced a seasonal slowdown.But Europe showed signs of avoiding a sharp build-up of supplies of premium-grade base oils, at least at the start of the year.The Netherlands’ base oils output of 101,000 tonnes in January fell from 115,000 tonnes the previous month, government data showed.The volume still held above the 100,000 tonnes/month level for the third time in four months.It was also 33% higher than in January 2024. Production was slowing at that time ahead of scheduled plant maintenance during the first and second quarters of last year.The Netherlands is home to Europe’s sole Group II base oils plant.A slump in Europe’s base oils imports from the US in January partially countered the impact of the Netherlands’ higher output.The US is Europe’s largest overseas supplier of Group II base oils.Even with the Netherlands’ firm base oils output, the drop in imports from the US and Asia left regional premium-grade supplies at their lowest level in nine months.Total supply of less than 145,000 tonnes in January fell from more than 160,000 tonnes in December. .It was still 15% higher than levels of around 125,000 tonnes in January 2024.But a pick-up in the Netherlands’ consumption for “transformation in oil products” in January cut further the volume available for the regional market.The Netherlands’ steady base oils exports to non-EU markets cut supply further, leaving total volumes of less than 67,000 tonnes in January.The volume was down from more than 100,000 tonnes in December and almost the same as in January 2024.The lower volume cushioned the impact of lower base oils demand in Europe during the winter months.It also coincided with relatively firm Europe Group II base oils prices compared with Group I prices at the start of the year.Any extension of those low volumes over the following months would require a drop in the Netherlands’ base oils output or a more prolonged slowdown in shipments from the US.Base oils output in the Netherlands instead likely held at firm levels so far this year, with no repeat of the scheduled plant maintenance work that it faced early last year.US base oils exports to Europe also rose in January to a four-month high..UK’s January base oils output rises.Europe’s January Group III supply rises
The Netherlands’ base oils output stayed higher-than-usual in January for an eighth month, at a time when regional demand faced a seasonal slowdown.But Europe showed signs of avoiding a sharp build-up of supplies of premium-grade base oils, at least at the start of the year.The Netherlands’ base oils output of 101,000 tonnes in January fell from 115,000 tonnes the previous month, government data showed.The volume still held above the 100,000 tonnes/month level for the third time in four months.It was also 33% higher than in January 2024. Production was slowing at that time ahead of scheduled plant maintenance during the first and second quarters of last year.The Netherlands is home to Europe’s sole Group II base oils plant.A slump in Europe’s base oils imports from the US in January partially countered the impact of the Netherlands’ higher output.The US is Europe’s largest overseas supplier of Group II base oils.Even with the Netherlands’ firm base oils output, the drop in imports from the US and Asia left regional premium-grade supplies at their lowest level in nine months.Total supply of less than 145,000 tonnes in January fell from more than 160,000 tonnes in December. .It was still 15% higher than levels of around 125,000 tonnes in January 2024.But a pick-up in the Netherlands’ consumption for “transformation in oil products” in January cut further the volume available for the regional market.The Netherlands’ steady base oils exports to non-EU markets cut supply further, leaving total volumes of less than 67,000 tonnes in January.The volume was down from more than 100,000 tonnes in December and almost the same as in January 2024.The lower volume cushioned the impact of lower base oils demand in Europe during the winter months.It also coincided with relatively firm Europe Group II base oils prices compared with Group I prices at the start of the year.Any extension of those low volumes over the following months would require a drop in the Netherlands’ base oils output or a more prolonged slowdown in shipments from the US.Base oils output in the Netherlands instead likely held at firm levels so far this year, with no repeat of the scheduled plant maintenance work that it faced early last year.US base oils exports to Europe also rose in January to a four-month high..UK’s January base oils output rises.Europe’s January Group III supply rises
