The UK’s base oils output fell to a five-month in December, contrasting with a recovery in Spain’s Group I output to a four-month high following the completion of plant maintenance work.The diverging trends helped to leave Europe’s total Group I base oils supply relatively steady in December and in the fourth quarter of the year.A sustained pick-up in Group I base oils exports to markets outside the region then cut supply to its lowest level in years.The UK’s base oils output of 24,400 tonnes in December fell from more than 30,000 tonnes in each of the previous three months, government data showed.The drop in supply contrasted with a rebound in Spain’s Group I output to more than 24,000 tonnes in December, from less than 12,500 tonnes the previous month.The volumes helped to leave Europe’s Group I base oils supply, or output and imports combined, steady at more than 160,000 tonnes in December.Including Europe’s Group I base oils exports to markets outside the region, the left-over volume came to more than 110,000 tonnes in December and around 270,000 tonnes in the fourth quarter of the year..The quarterly volume fell from more than 370,000 tonnes during the previous three months to the lowest in more than four years.The lower supply helped to balance out the impact of a seasonal slowdown in regional demand at year-end and early this year.It also curbed the availability of additional Group I cargoes for export early this year.The tighter availability cut the need for refiners to adjust prices to attract demand from overseas markets.Europe’s firm Group I base oils export cargo prices relative to other markets reflected that dynamic.Export prices maintained a premium to imported cargo prices in markets like Middle East and India so far this year, keeping the arbitrage shut.The dynamic contrasted with the first quarter of 2024, when Europe’s Group I export prices fell to a discount to imported cargo prices in those overseas markets..Netherlands’ Dec base oils output rises.Europe Dec Grp III base oils supply falls
