The UK’s base oils and lube output stayed lower than usual in October as the country relied increasingly on overseas supplies to cover more of its requirements.The trend increased the UK’s role as a major outlet for premium-grade base oils. It also cut regional supply of Group I base oils at a time when Europe already faced a slump in supplies of the grade from Russia..Europe's Oct imports from Russia fall.Weak regional Group I export prices curbed the incentive to increase output of Group I base oils beyond requirements to cover term commitments.Any continuation of lower Group I base oils output into this year raised the prospect of compounding a likely squeeze in regional availability of the product over the coming months.The UK’s base oils and lube output of 24,900t in October rebounded from a six-month low of less than 11,500t in September, government data showed..The UK’s base oils production capacity consists of Group I base oils.The drop in production in seven of the last eight months cut the UK’s total output to 231,000t in the first ten months of the year.The volume was down 17pc from almost 280,000t during the same period in 2021.The drop in output coincided with higher-than-usual production levels for middle distillates. High diesel prices relative to crude incentivized such a move.The lower output also coincided with a rise in the UK’s base oils imports throughout most of the year.Imports of 27,840t in October rose from a twenty-month low of less than 23,000t the previous month amid a pick-up in supplies from the Netherlands.Total imports of almost 327,000t in the first ten months of the year were up 12pc from around 292,000t during the same period last year.Shipments got a boost from a 92pc rise in supplies from the Netherlands to more than 67,000t.The Netherlands is home to Europe’s sole Group II base oils plant.The trend reflected the UK’s growing consumption of premium-grade base oils for lubricants production.The rise in base oils imports boosted their share of the UK’s supply to more than 60pc of the total in the first ten months of the year. The share was up from around 50pc in 2021..Netherlands’ Oct base oils output rises
The UK’s base oils and lube output stayed lower than usual in October as the country relied increasingly on overseas supplies to cover more of its requirements.The trend increased the UK’s role as a major outlet for premium-grade base oils. It also cut regional supply of Group I base oils at a time when Europe already faced a slump in supplies of the grade from Russia..Europe's Oct imports from Russia fall.Weak regional Group I export prices curbed the incentive to increase output of Group I base oils beyond requirements to cover term commitments.Any continuation of lower Group I base oils output into this year raised the prospect of compounding a likely squeeze in regional availability of the product over the coming months.The UK’s base oils and lube output of 24,900t in October rebounded from a six-month low of less than 11,500t in September, government data showed..The UK’s base oils production capacity consists of Group I base oils.The drop in production in seven of the last eight months cut the UK’s total output to 231,000t in the first ten months of the year.The volume was down 17pc from almost 280,000t during the same period in 2021.The drop in output coincided with higher-than-usual production levels for middle distillates. High diesel prices relative to crude incentivized such a move.The lower output also coincided with a rise in the UK’s base oils imports throughout most of the year.Imports of 27,840t in October rose from a twenty-month low of less than 23,000t the previous month amid a pick-up in supplies from the Netherlands.Total imports of almost 327,000t in the first ten months of the year were up 12pc from around 292,000t during the same period last year.Shipments got a boost from a 92pc rise in supplies from the Netherlands to more than 67,000t.The Netherlands is home to Europe’s sole Group II base oils plant.The trend reflected the UK’s growing consumption of premium-grade base oils for lubricants production.The rise in base oils imports boosted their share of the UK’s supply to more than 60pc of the total in the first ten months of the year. The share was up from around 50pc in 2021..Netherlands’ Oct base oils output rises
