Spain’s April base oils supply steadies

Spain’s base oil supply held firm in April at a time when regional availability was increasingly tight.

Supplies of more than 72,000t in April slipped by 7pc from more than 77,500t the previous month. The volume rose for the fifth time in six months from year-earlier levels.

The volume was derived from government production and port data.

The sustained rise in supply boosted total volumes to 273,570t in the first four months of the year. The volume was up 17pc from 234,500t during the same period last year.

Supplies rose amid a pick-up in output of both Group I and Group III base oils compared with year-earlier levels.

This year’s higher output partly reflected the lack of any plant maintenance work during the first few months of the year. Last year’s lower output partly reflected the impact of maintenance work.

The firm volumes came at a time when European base oil supply was unexpectedly tight as buyers sought alternatives to shipments of Russian origin.

The rise in supplies from Spain so far this year also contrasted with a fall in output from several other key sources such as Italy, UK and Netherlands. The lower volumes from those markets exacerbated the tightness.

The stronger regional demand for more limited supplies triggered a surge in prices and slashed the availability of export shipments to markets beyond Europe.