The UK’s base oils supply lagged demand in October for the second time in three months amid a slump in domestic output.Total supply of less than 35,000t in October fell from more than 50,000t in each of the previous three months to the lowest in more than a year, government data showed.Supply fell as domestic base oils output slumped to around 2,000t in October.The volume was the lowest in nineteen months and down from typical levels of around 24,000 t/month over the past year.The drop in production levels contrasted with a rise in Italy’s domestic base oils output.The contrasting trends curbed the pace of any supply-build in Europe during the final quarter of the year.The UK's demand, or domestic consumption and exports combined, was steady at around 44,000t in October.Exports got support from a rise in flows to non-European outlets like Africa.The shipments continued to boost the share of the UK’s supplies moving to markets outside Europe.That trend in turn kept tighter the volume of Group I base oils supplies in the European market.Tighter supplies and firmer Group I prices relative to other base oils grades increased the incentive for blenders to boost consumption of premium-grade base oils instead.The UK's steady base oils demand and lower supply left a shortfall of more than 9,000t in October.The shortfall slowed any build-up of surplus supplies at a time of year when regional demand faced a seasonal slowdown..UK’s Sept base oils supply falls.Italy’s October base oils supply rises
The UK’s base oils supply lagged demand in October for the second time in three months amid a slump in domestic output.Total supply of less than 35,000t in October fell from more than 50,000t in each of the previous three months to the lowest in more than a year, government data showed.Supply fell as domestic base oils output slumped to around 2,000t in October.The volume was the lowest in nineteen months and down from typical levels of around 24,000 t/month over the past year.The drop in production levels contrasted with a rise in Italy’s domestic base oils output.The contrasting trends curbed the pace of any supply-build in Europe during the final quarter of the year.The UK's demand, or domestic consumption and exports combined, was steady at around 44,000t in October.Exports got support from a rise in flows to non-European outlets like Africa.The shipments continued to boost the share of the UK’s supplies moving to markets outside Europe.That trend in turn kept tighter the volume of Group I base oils supplies in the European market.Tighter supplies and firmer Group I prices relative to other base oils grades increased the incentive for blenders to boost consumption of premium-grade base oils instead.The UK's steady base oils demand and lower supply left a shortfall of more than 9,000t in October.The shortfall slowed any build-up of surplus supplies at a time of year when regional demand faced a seasonal slowdown..UK’s Sept base oils supply falls.Italy’s October base oils supply rises