Europe’s Group III base oils supply fell to a four-year low in September at the same time as regional lube demand got a seasonal boost.Total supply of less than 100,000 tonnes in September fell from more than 190,000 tonnes the previous month, government data showed.The August volume was the highest since first-half 2022. The September volume was the lowest since mid-2020.Supply had averaged around 136,000 tonnes/month in the first seven months of the year.The sharp contrast between the August and September volumes pointed to moves to build stocks ahead of a seasonal pick-up in demand and scheduled maintenance work on a Group III base oils unit at the end of the third quarter.Europe's Group III prices rose in August and September relative to Group I prices and relative to Group III prices in other regions, mirroring signs of tighter supply-demand fundamentals during those months.The region’s Group III prices then resumed their fall versus Group I prices and began a sharp correction versus Group III prices in other regions from the beginning of October.The weaker prices from the start of the fourth quarter suggested that the build-up of supplies in the third quarter was more than sufficient to cover for the seasonal pick-up in demand and for the plant maintenance work.The weaker prices and signs of more-than-sufficient supplies in Europe also raised the prospect of more Group III shipments from Asia and the Middle East moving to other markets instead.US imports of Group III base oils surged in September and showed signs of rising strongly again this month, reflecting such a trend.The fall in Europe’s Group III supply in September partly reflected a drop in shipments from Spain ahead of the start of plant maintenance work in the country from the second half of the month.Shipments from the Middle East and Asia also slumped, compounding the drop in supplies..US’ September base oils imports surge.Europe’s Sept lube demand mixed.Europe’s Aug Group III supply rises
Europe’s Group III base oils supply fell to a four-year low in September at the same time as regional lube demand got a seasonal boost.Total supply of less than 100,000 tonnes in September fell from more than 190,000 tonnes the previous month, government data showed.The August volume was the highest since first-half 2022. The September volume was the lowest since mid-2020.Supply had averaged around 136,000 tonnes/month in the first seven months of the year.The sharp contrast between the August and September volumes pointed to moves to build stocks ahead of a seasonal pick-up in demand and scheduled maintenance work on a Group III base oils unit at the end of the third quarter.Europe's Group III prices rose in August and September relative to Group I prices and relative to Group III prices in other regions, mirroring signs of tighter supply-demand fundamentals during those months.The region’s Group III prices then resumed their fall versus Group I prices and began a sharp correction versus Group III prices in other regions from the beginning of October.The weaker prices from the start of the fourth quarter suggested that the build-up of supplies in the third quarter was more than sufficient to cover for the seasonal pick-up in demand and for the plant maintenance work.The weaker prices and signs of more-than-sufficient supplies in Europe also raised the prospect of more Group III shipments from Asia and the Middle East moving to other markets instead.US imports of Group III base oils surged in September and showed signs of rising strongly again this month, reflecting such a trend.The fall in Europe’s Group III supply in September partly reflected a drop in shipments from Spain ahead of the start of plant maintenance work in the country from the second half of the month.Shipments from the Middle East and Asia also slumped, compounding the drop in supplies..US’ September base oils imports surge.Europe’s Sept lube demand mixed.Europe’s Aug Group III supply rises
