The UK’s base oils output rose to a four-month high in January, adding to a similar pick-up in output in Spain and Italy that triggered a jump in Europe’s Group I base oils supply at the start of the year.The UK’s base oils output of 34,000 tonnes in January rose from less than 25,000 tonnes the previous month and more than doubled versus year-earlier levels, government data showed.Spain’s Group I base oils output rose to a five-month high in January, while Italy’s rose to a seven-month high.The rise in production, combined with Europe’s imports from Group I sources, lifted the region’s total Group I supply to more than 200,000 tonnes in January..The volume rose from less than 170,000 tonnes in December to a four-month high.Europe’s Group I base oils supply rebounded at a time of year when regional demand remained muted during the winter months.A surge in Group I exports to markets outside Europe curbed the size of any supply-build.The rise in shipments during the winter months also mirrored a similar seasonal pattern in previous years.A pick-up in base oils exports at year-end and the start of the new year typically also coincided with a sharp fall in Europe’s Group I base oils export prices.The lower prices generated additional arbitrage opportunities that helped to clear the surplus.Europe’s Group I base oils export prices were by contrast much steadier than usual late last year and early this year.Their premium to feedstock vacuum gasoil prices also bottomed out earlier and at much higher levels than in the first quarter of 2024.The high export volumes and steadier prices this year likely reflected a larger share of the shipments consisting of term supplies.High export volumes at the start of the year previously included a larger share of spot shipments.The need to place the spot shipments increased pressure on prices to move to levels that made the arbitrage feasible to outlets like the Middle East.The smaller volume of spot shipments at the start of this year curbed that pressure..Europe’s January Group III supply rises.Italy's February lube demand falls.Asia's January lube demand rises.Global exports to Africa rise in January .Global exports to Middle East rise in Feb
The UK’s base oils output rose to a four-month high in January, adding to a similar pick-up in output in Spain and Italy that triggered a jump in Europe’s Group I base oils supply at the start of the year.The UK’s base oils output of 34,000 tonnes in January rose from less than 25,000 tonnes the previous month and more than doubled versus year-earlier levels, government data showed.Spain’s Group I base oils output rose to a five-month high in January, while Italy’s rose to a seven-month high.The rise in production, combined with Europe’s imports from Group I sources, lifted the region’s total Group I supply to more than 200,000 tonnes in January..The volume rose from less than 170,000 tonnes in December to a four-month high.Europe’s Group I base oils supply rebounded at a time of year when regional demand remained muted during the winter months.A surge in Group I exports to markets outside Europe curbed the size of any supply-build.The rise in shipments during the winter months also mirrored a similar seasonal pattern in previous years.A pick-up in base oils exports at year-end and the start of the new year typically also coincided with a sharp fall in Europe’s Group I base oils export prices.The lower prices generated additional arbitrage opportunities that helped to clear the surplus.Europe’s Group I base oils export prices were by contrast much steadier than usual late last year and early this year.Their premium to feedstock vacuum gasoil prices also bottomed out earlier and at much higher levels than in the first quarter of 2024.The high export volumes and steadier prices this year likely reflected a larger share of the shipments consisting of term supplies.High export volumes at the start of the year previously included a larger share of spot shipments.The need to place the spot shipments increased pressure on prices to move to levels that made the arbitrage feasible to outlets like the Middle East.The smaller volume of spot shipments at the start of this year curbed that pressure..Europe’s January Group III supply rises.Italy's February lube demand falls.Asia's January lube demand rises.Global exports to Africa rise in January .Global exports to Middle East rise in Feb
