Spain, Indonesia April Group III Base Oils Exports Slip

Premium-grade base oils shipments from Spain fell to a three-month low in April while flows from Indonesia also eased, adding pressure to an already tightening global Group III supply balance.

Total shipments from Spain fell to around 40,000 tonnes in April, down from more than 52,000 tonnes in March and from year-earlier levels of close to 60,000 tonnes, port data showed.

Spain and Indonesia were already major sources of Group III base oils even before the disruption to Middle East flows from late February.

That disruption tightened global supply, magnifying the importance of Spain and Indonesia and increasing the market impact of any change in those shipments.

Key Highlights

·         Spain’s exports fell mostly because of a dip in flows to India, while shipments to northwest Europe held steady.

·         Indonesia’s Group III base oils exports rose to a six-month high in March before easing in April.

·         Most of the March volume moved to Europe, with one shipment arriving around mid-April and another set to arrive in the coming days.

·         April shipments shifted to other markets such as India and South Korea rather than Europe.

·         Spain and Indonesia accounted for 27% of Europe’s Group III supply in 2025, rising to 29% in early 2026.

Market Repercussions

Europe’s Group III market tightened sharply following the halt in Middle East shipments, which covered around 37% of regional supply in 2025.

Flows from Spain and Indonesia were insufficient to make up the shortfall, while any slowdown in shipments pointed to further tightening the existing imbalance.

Maintenance work was scheduled for the Spain unit in the second quarter.

Tight global supply and surging prices increased the incentive to delay any such shutdown, a dynamic that had already pushed back maintenance at another Group III unit in Asia to later in the year.