Spain, Indonesia Premium-Grade Base Oils Exports Rise In March

Spain’s premium-grade base oils exports rose to a seven-month high in March, while Indonesia’s shipments recovered from a February slowdown when flows to Europe temporarily paused.

Shipments from Spain rose to more than 50,000 tonnes in March, climbing from more than 40,000 tonnes in February to the highest level since August 2025, port data showed.

A larger-than-usual share of the shipments moved to India, while flows to Europe held steady.

Shipments from Spain and Indonesia took on greater significance after the loss of Middle East Group III supply from end-February.

Relatively stable export volumes from the two countries over the past year pointed to limited capacity to increase output materially, restricting their ability to offset the supply shortfall.

Any drop in export volumes would instead compound the current supply tightness. 

Key Highlights

·         Spain’s premium-grade exports to northwest Europe held at more than 25,000 tonnes for a second month, slightly above typical monthly levels of more than 20,000 tonnes in 2025.

·         Indonesia’s premium-grade base oils exports to Europe paused in February for the first time since October 2025, when a refinery fire affected production.

·         Indonesia’s total premium-grade exports fell to 10,000 tonnes in February, dipping from more typical levels of around 20,000 tonnes in January to an eight-month low.

·         Supply disruption to Europe remained limited, with a cargo loading in late January and reaching northwest Europe in early March.

·         Another cargo loaded in early March and was scheduled to reach northwest Europe in the coming week, with a further shipment set to arrive in first-half May.

Market Repercussions

Tight Group III availability and rising prices incentivised refiners to boost premium-grade output.

Relatively stable flows from Spain and Indonesia over the past year pointed to limited scope to increase output meaningfully.

Any plant-maintenance work would instead risk reducing export volumes, adding further pressure to already tight supply.

China’s Group III production capacity expanded significantly in recent years, offering a potential alternative source.

Monthly output peaked at around 50,000 tonnes in early 2025 before falling below 25,000 tonnes in the second half of the year, as weak margins prompted refiners to prioritise Group II production.