The UK’s base oils output rose in June to the highest in almost two years, adding to Europe’s Group I supply and to signs of still-firm demand for the grade throughout the region.The UK’s base oils output of 38,400 tonnes in June rose from 28,100 tonnes the previous month to the highest since July 2022, government data showed.The rise in output coincided with steady Group I production in Italy in June.It also cushioned the impact of lower output in Spain in June and a drop in Group I imports from sources like Egypt.Europe’s Group I supply, or output and imports combined, duly edged down to around 186,000 tonnes in June.The volume still held in a narrow 185,000-200,000 tonnes/month range in the four months to June and lifted total supply to more than 575,000 tonnes in the second quarter of the year.The second-quarter volume rose from less than 520,000 tonnes in the first three months of the year and from less than 500,000 tonnes during the same period last year.Supply got a further boost from a dip in Europe’s exports of Group I base oils to markets beyond the region.The rise in supply highlighted the limited impact of the closure of a Group I base oils unit in Italy earlier this year.It also contrasted with a drop in supplies of premium-grade base oils in the region in the first half of the year.The dynamic boosted Group I base oils’ share of Europe’s total supply and pointed to still-firm regional demand for the grade.Europe’s Group I base oils prices strengthened relative to Group II and Group III prices in the second quarter of the year, adding to signs of firm demand.The trend contrasted with other regions, where Group I base oils’ share of total supply was lower and trending downwards..Italy’s June base oils output stays rangebound.Europe June Grp III supply holds steady.Europe’s June Grp I exports extend fall
The UK’s base oils output rose in June to the highest in almost two years, adding to Europe’s Group I supply and to signs of still-firm demand for the grade throughout the region.The UK’s base oils output of 38,400 tonnes in June rose from 28,100 tonnes the previous month to the highest since July 2022, government data showed.The rise in output coincided with steady Group I production in Italy in June.It also cushioned the impact of lower output in Spain in June and a drop in Group I imports from sources like Egypt.Europe’s Group I supply, or output and imports combined, duly edged down to around 186,000 tonnes in June.The volume still held in a narrow 185,000-200,000 tonnes/month range in the four months to June and lifted total supply to more than 575,000 tonnes in the second quarter of the year.The second-quarter volume rose from less than 520,000 tonnes in the first three months of the year and from less than 500,000 tonnes during the same period last year.Supply got a further boost from a dip in Europe’s exports of Group I base oils to markets beyond the region.The rise in supply highlighted the limited impact of the closure of a Group I base oils unit in Italy earlier this year.It also contrasted with a drop in supplies of premium-grade base oils in the region in the first half of the year.The dynamic boosted Group I base oils’ share of Europe’s total supply and pointed to still-firm regional demand for the grade.Europe’s Group I base oils prices strengthened relative to Group II and Group III prices in the second quarter of the year, adding to signs of firm demand.The trend contrasted with other regions, where Group I base oils’ share of total supply was lower and trending downwards..Italy’s June base oils output stays rangebound.Europe June Grp III supply holds steady.Europe’s June Grp I exports extend fall
