The UK’s base oils supply recovered to a ten-month high in March amid a simultaneous rebound in output and imports.Demand stayed more muted amid a further dip in exports.Rising supply and lower demand triggered a surge in the UK’s surplus base oils supply to the highest in more than eight years.A rise in surplus supply mirrored a similar trend in Italy in April. The country’s output far exceeded consumption, triggering a sharp rise in base oils stocks.The rise in surplus supply and lower exports in markets like the UK pointed to moves to build stocks ahead of a seasonal pick-up in demand in Europe during the second quarter of the year.The stock-building moves were even more important because of the closure of a Group I base oils unit in Italy early this year.Europe’s Group I base oils supply showed signs of lagging demand in the second quarter of the year even with the stock-building.Supply tightened more than expected as planned plant maintenance work and unexpected production issues in the region compounded the impact of the plant closure.The UK’s base oils supply rebounded to close to 75,000 tonnes in March, up from less than 30,000 tonnes the previous month, government data showed.Supply rose as domestic base oils output rebounded to more than 34,000 tonnes, following a pause in production the previous month.Imports also rose to a four-month high, with the shipments including increasingly regular flows from Egypt. Shipments from that market had been rare before last November.The UK’s demand, or domestic consumption and exports combined, recovered to more than 40,000 tonnes in March, from a multi-year-low of less than 27,000 tonnes the previous month.The March volume was still lower than usual as a further dip in the country’s base oils exports countered a rebound in domestic demand.The trend cut base oils exports’ share of demand to 26% of the total in March, down from a 48% share in 2023.The trend added to signs of European refiners’ focus on prioritising regional markets ahead of outlets in more distant markets. With supply rising and demand low, the UK’s surplus supply duly surged to an unusually-large volume of more than 34,000 tonnes.The second-largest surplus in the last four years was less than 19,500 tonnes in mid-2020..Italy’s April base oils output rises.Eni moves ahead with Livorno refinery conversion into bio-refinery
The UK’s base oils supply recovered to a ten-month high in March amid a simultaneous rebound in output and imports.Demand stayed more muted amid a further dip in exports.Rising supply and lower demand triggered a surge in the UK’s surplus base oils supply to the highest in more than eight years.A rise in surplus supply mirrored a similar trend in Italy in April. The country’s output far exceeded consumption, triggering a sharp rise in base oils stocks.The rise in surplus supply and lower exports in markets like the UK pointed to moves to build stocks ahead of a seasonal pick-up in demand in Europe during the second quarter of the year.The stock-building moves were even more important because of the closure of a Group I base oils unit in Italy early this year.Europe’s Group I base oils supply showed signs of lagging demand in the second quarter of the year even with the stock-building.Supply tightened more than expected as planned plant maintenance work and unexpected production issues in the region compounded the impact of the plant closure.The UK’s base oils supply rebounded to close to 75,000 tonnes in March, up from less than 30,000 tonnes the previous month, government data showed.Supply rose as domestic base oils output rebounded to more than 34,000 tonnes, following a pause in production the previous month.Imports also rose to a four-month high, with the shipments including increasingly regular flows from Egypt. Shipments from that market had been rare before last November.The UK’s demand, or domestic consumption and exports combined, recovered to more than 40,000 tonnes in March, from a multi-year-low of less than 27,000 tonnes the previous month.The March volume was still lower than usual as a further dip in the country’s base oils exports countered a rebound in domestic demand.The trend cut base oils exports’ share of demand to 26% of the total in March, down from a 48% share in 2023.The trend added to signs of European refiners’ focus on prioritising regional markets ahead of outlets in more distant markets. With supply rising and demand low, the UK’s surplus supply duly surged to an unusually-large volume of more than 34,000 tonnes.The second-largest surplus in the last four years was less than 19,500 tonnes in mid-2020..Italy’s April base oils output rises.Eni moves ahead with Livorno refinery conversion into bio-refinery