US base oils exports to Europe rebounded in October at the same time as demand in the region slowed.Shipments surged after falling to unusually low levels during the previous two months.The slump in shipments to Europe in the third quarter partially balanced out a slowdown in lube consumption during that period.The rise in shipments in October helped to replenish distributors’ depleted stocks. They also coincided with a seasonal slowdown in demand in Europe during the final months of the year.A regionwide slowdown in economic growth and falling base oils prices compounded the drop in demand.The weaker demand fundamentals made more challenging the prospect of absorbing more supplies from the US.There were signs of a slowdown in shipments from the US to Europe in November.US exports of 542,700bl (76,440t) to Europe in October rose from a seven-month low of less than 174,000bl in September and from 203,200bl in August, government data showed..The volume was above more typical levels of around 485,000 bl/month in the year to July.The rebound in shipments in October coincided with a recovery in total US base oils exports. But the total volume was still lower than usual.A consequence was a surge in the share of US shipments bound for Europe and a slump in the share of shipments bound for other key markets like Latin America.The trade flows likely partly reflected the timing of maintenance work at various US plants in the third and fourth quarters of the year and the impact of that work on the refiners’ export volumes.A drop in base oils output at several European refineries in September, combined with lower supplies from the US, had partially cushioned the impact of slowing lubricants demand.Even with the rise in US shipments in October, European base oils prices recovered strongly relative to crude and diesel in recent weeks.The price recovery would likely get more support from any slowdown in US shipments to Europe during the final weeks of the year. .US’ October base oils exports recover
US base oils exports to Europe rebounded in October at the same time as demand in the region slowed.Shipments surged after falling to unusually low levels during the previous two months.The slump in shipments to Europe in the third quarter partially balanced out a slowdown in lube consumption during that period.The rise in shipments in October helped to replenish distributors’ depleted stocks. They also coincided with a seasonal slowdown in demand in Europe during the final months of the year.A regionwide slowdown in economic growth and falling base oils prices compounded the drop in demand.The weaker demand fundamentals made more challenging the prospect of absorbing more supplies from the US.There were signs of a slowdown in shipments from the US to Europe in November.US exports of 542,700bl (76,440t) to Europe in October rose from a seven-month low of less than 174,000bl in September and from 203,200bl in August, government data showed..The volume was above more typical levels of around 485,000 bl/month in the year to July.The rebound in shipments in October coincided with a recovery in total US base oils exports. But the total volume was still lower than usual.A consequence was a surge in the share of US shipments bound for Europe and a slump in the share of shipments bound for other key markets like Latin America.The trade flows likely partly reflected the timing of maintenance work at various US plants in the third and fourth quarters of the year and the impact of that work on the refiners’ export volumes.A drop in base oils output at several European refineries in September, combined with lower supplies from the US, had partially cushioned the impact of slowing lubricants demand.Even with the rise in US shipments in October, European base oils prices recovered strongly relative to crude and diesel in recent weeks.The price recovery would likely get more support from any slowdown in US shipments to Europe during the final weeks of the year. .US’ October base oils exports recover
