Spain’s March base oils output rises

Spain’s base oils supply rose in March to a three-month high at a time when availability in Europe was tightening and prices surging.

Base oils supply of more than 77,000t in March rose from more than 57,000t the previous month to the highest this year. The volume was derived from government production and port data.

Supplies of more than 200,000t in the first three months of the year slipped by 8pc from more than 215,000t during the fourth quarter of last year. But they were almost 30,000t higher than during the same period a year earlier.

Europe base oil supply has tightened sharply this year because of prolonged plant maintenance work in Italy, some scheduled maintenance work in other countries, and a slump in base oil shipments from Russia.

Regional base oil prices have surged in response, especially for Group I supplies.

The tighter availability and closure of several Group I plants in Europe last year has increased the importance of Spain as a key production and distribution hub for all base oil grades within and beyond the region.

Base oil supplies from the country fell sharply during the first half of last year because of plant maintenance work. They have rebounded strongly and held above 200,000t per quarter since the second half of last year.