South Korean refiner S-Oil forecast firm base oils fundamentals in the second quarter of the year as demand gets a seasonal boost and supply falls because of plant maintenance work.

Several Group III base oils plants were scheduled to undergo plant maintenance work in South Korea and in Europe during the second quarter, including one of S-Oil’s units.

Hyundai Shell Base Oil (HSB) forecast a relatively weak outlook in the second quarter as supply rises following the completion of plant maintenance work in China.

Demand is then likely to face a seasonal slowdown during India’s monsoon season.

All of HSB’s production consists of Group II base oils.

Some 40pc of S-Oil’s production consists of Group III base oils.