Base oils supply in the Americas, western Europe and Asia-Pacific steadied in February, contrasting with a typical fall in output during the first few months of the year.Supply of 1.95mn t in February edged up by 0.5pc from a nine-month low of 1.94mn t in January. The volume was derived by combining supply in the Americas, eight countries in Europe and seven markets in Asia-Pacific.Supply was up by a larger 11pc from 1.76mn t during the same month a year earlier..The steadier supply in February reflected a small improvement in Europe compared with the previous month.Even with the recovery, supply in Europe remained low. It also faced the additional pressure of a slump in supplies from Russia over the coming months and signs of tighter availability in the Americas markets.Unusually low supply in Europe and the Americas contrasted with firm supply in the Asia-Pacific market.Base oil price trends in recent months have reflected that dynamic.Prices in Europe have risen faster than in the US and Asia-Pacific. Prices in Asia-Pacific have risen the slowest. The different pace of price-increases has created arbitrage opportunities to move more supplies from Asia-Pacific to markets like Mideast Gulf and Europe.Any such arbitrage shipments are likely to be insufficient to cover the shortfall from the drop in supplies from Russia..Europe’s Feb base oil supply stays low
Base oils supply in the Americas, western Europe and Asia-Pacific steadied in February, contrasting with a typical fall in output during the first few months of the year.Supply of 1.95mn t in February edged up by 0.5pc from a nine-month low of 1.94mn t in January. The volume was derived by combining supply in the Americas, eight countries in Europe and seven markets in Asia-Pacific.Supply was up by a larger 11pc from 1.76mn t during the same month a year earlier..The steadier supply in February reflected a small improvement in Europe compared with the previous month.Even with the recovery, supply in Europe remained low. It also faced the additional pressure of a slump in supplies from Russia over the coming months and signs of tighter availability in the Americas markets.Unusually low supply in Europe and the Americas contrasted with firm supply in the Asia-Pacific market.Base oil price trends in recent months have reflected that dynamic.Prices in Europe have risen faster than in the US and Asia-Pacific. Prices in Asia-Pacific have risen the slowest. The different pace of price-increases has created arbitrage opportunities to move more supplies from Asia-Pacific to markets like Mideast Gulf and Europe.Any such arbitrage shipments are likely to be insufficient to cover the shortfall from the drop in supplies from Russia..Europe’s Feb base oil supply stays low
