Turkey’s March base oils output rebounds

Turkey’s base oils output rose to a ten-month high in March as production restarted for the first time this year.

Base oils output of 12,420t in March followed a pause in production during the first two months of the year, government data showed.

The volume was the highest since May 2022.

The pause in base oils production in January and February coincided with oversupply in the European base oils market and a slump in regional prices.

The resumption of production in March coincided with more balanced base oils supply in Europe and a strong recovery in base oils prices.

The availability of supply from Turkey’s sole domestic producer also gave buyers the option of procuring smaller volumes and avoiding other risks such as currency volatility.