US base oils exports to Europe rebounded in September to their second-highest level this year.The rise in shipments helped to sustain US base oils and lube exports at more elevated levels in the third quarter of the year, limiting a build-up of surplus supplies in that market.The rise in shipments instead added to premium-grade supplies in Europe, where lube demand has faced a sustained contraction over most of the past three years.Total US base oils exports of 611,000 barrels (86,000 tonnes) to Europe in September rose from less than 290,000 barrels the previous month, government data showed.The volume was the highest in three months and second-highest since November 2023.Most of the supplies consisted of Group II base oils.The rise in shipments could have reflected moves to build stocks in Europe ahead of and to cover for the shutdown of a key Group II plant in US in October for scheduled maintenance work.The higher volumes also coincided with and added to signs of firm Group II base oils output in Europe in second-half 2024.The Netherlands’ base oils output fell sharply in the fourth quarter of last year and in the first quarter of this year, when plant maintenance work took place.A surge in US exports to Europe in the fourth quarter of last year helped to partially cushion the impact of the drop in regional supply.A similar drop in output is unlikely at the end of this year, curbing the need for additional volumes from the US.More shipments could still be lined up.Europe’s Group II price premium to US export prices held close to a six-month high in first-half November after rising steadily since the beginning of August.The widening premium added to the feasibility and attraction of moving more shipments to Europe at a time when the US was seeking to clear surplus supplies at year-end..US September base oil/lube exports fall.Italy’s September lube demand falls
US base oils exports to Europe rebounded in September to their second-highest level this year.The rise in shipments helped to sustain US base oils and lube exports at more elevated levels in the third quarter of the year, limiting a build-up of surplus supplies in that market.The rise in shipments instead added to premium-grade supplies in Europe, where lube demand has faced a sustained contraction over most of the past three years.Total US base oils exports of 611,000 barrels (86,000 tonnes) to Europe in September rose from less than 290,000 barrels the previous month, government data showed.The volume was the highest in three months and second-highest since November 2023.Most of the supplies consisted of Group II base oils.The rise in shipments could have reflected moves to build stocks in Europe ahead of and to cover for the shutdown of a key Group II plant in US in October for scheduled maintenance work.The higher volumes also coincided with and added to signs of firm Group II base oils output in Europe in second-half 2024.The Netherlands’ base oils output fell sharply in the fourth quarter of last year and in the first quarter of this year, when plant maintenance work took place.A surge in US exports to Europe in the fourth quarter of last year helped to partially cushion the impact of the drop in regional supply.A similar drop in output is unlikely at the end of this year, curbing the need for additional volumes from the US.More shipments could still be lined up.Europe’s Group II price premium to US export prices held close to a six-month high in first-half November after rising steadily since the beginning of August.The widening premium added to the feasibility and attraction of moving more shipments to Europe at a time when the US was seeking to clear surplus supplies at year-end..US September base oil/lube exports fall.Italy’s September lube demand falls
