The UK’s base oils output edged down in February, adding to a dip in Group I production from other key European sources such as Italy and Spain.The ongoing shutdown of Turkey’s Group I unit in February added to the drop in supply.Lower supply curbed the size of any build-up of surplus volumes in Europe during the winter months.The smaller surplus in turn cut the volume of Group I supplies available for shipment to markets outside Europe.The UK’s base oils output of 31,000 tonnes in February fell from 34,000 tonnes the previous month, government data showed.The slowdown, combined with a dip in Europe’s Group I base oils imports, cut the region’s Group I base oils supply to around 160,000 tonnes in February..The volume fell from more than 200,000 tonnes in January to the lowest in a year.The lower volume coincided with and cushioned the impact of a seasonal slowdown in Europe’s lube consumption during the winter months.Supply was also sufficiently tight in February to trigger a slump in Europe’s Group I base oils exports to markets outside the region.The drop in exports impacted markets closer to Europe such as West Africa, as well as more distant outlets such as southeast Asia.The lack of any urgency to clear surplus volumes also curbed the need for an adjustment in Europe’s Group I prices to facilitate arbitrage opportunities to markets like West Africa and the Middle East.Europe’s Group I export prices duly maintained a steep premium to CFR prices in markets like the Middle East during the first quarter of the year.Europe’s total Group I supply, less exports to overseas markets, held at more than 100,000 tonnes in February for a third month. The volume lagged only slightly typical levels of close to 115,000 tonnes/month in 2024.The rangebound volume suggested that Europe’s monthly Group I base oils requirements were usually around that level. .Europe’s Feb Group III supply edges up.Asia’s Group III imports from Middle East rise in March.Italy’s March lube demand rises
The UK’s base oils output edged down in February, adding to a dip in Group I production from other key European sources such as Italy and Spain.The ongoing shutdown of Turkey’s Group I unit in February added to the drop in supply.Lower supply curbed the size of any build-up of surplus volumes in Europe during the winter months.The smaller surplus in turn cut the volume of Group I supplies available for shipment to markets outside Europe.The UK’s base oils output of 31,000 tonnes in February fell from 34,000 tonnes the previous month, government data showed.The slowdown, combined with a dip in Europe’s Group I base oils imports, cut the region’s Group I base oils supply to around 160,000 tonnes in February..The volume fell from more than 200,000 tonnes in January to the lowest in a year.The lower volume coincided with and cushioned the impact of a seasonal slowdown in Europe’s lube consumption during the winter months.Supply was also sufficiently tight in February to trigger a slump in Europe’s Group I base oils exports to markets outside the region.The drop in exports impacted markets closer to Europe such as West Africa, as well as more distant outlets such as southeast Asia.The lack of any urgency to clear surplus volumes also curbed the need for an adjustment in Europe’s Group I prices to facilitate arbitrage opportunities to markets like West Africa and the Middle East.Europe’s Group I export prices duly maintained a steep premium to CFR prices in markets like the Middle East during the first quarter of the year.Europe’s total Group I supply, less exports to overseas markets, held at more than 100,000 tonnes in February for a third month. The volume lagged only slightly typical levels of close to 115,000 tonnes/month in 2024.The rangebound volume suggested that Europe’s monthly Group I base oils requirements were usually around that level. .Europe’s Feb Group III supply edges up.Asia’s Group III imports from Middle East rise in March.Italy’s March lube demand rises
