Italy’s base oils output rose in December at the same time as a seasonal slowdown in domestic demand.Output was still lower than usual, curbing the size of the country’s base oils stocks at the end of the year.A pick-up in spot Group I export cargoes from Italy at the start of this year pointed to surplus supply even with the lower stocks.The surplus volume highlighted weak regional demand at the start of the year and followed a slowdown in Italy's base oils shipments to markets outside Europe in December.The size of the surplus was likely lower than at end-2022 and early last year.A surge in the country’s base oils stocks at that time preceded a wave of spot shipments during the fourth quarter of 2022 and the first quarter of last year.Those cargoes moved to markets like Turkey, Nigeria, and Mideast Gulf.Italy’s supply surplus is set to shrink further following the planned closure of one of its two virgin base oil units. The country’s base oils output of 66,400t in December rose from less than 45,000t the previous month.The volume was lower than usual but still the second highest in eight months.Output fell in the second and third quarters of last year because of extended plant maintenance work.The prolonged drop in output incentivized blenders to line up more regular supplies from other sources.The trend boosted the impact of the subsequent rise in output and the need to find less regular outlets for a larger share of the supplies. The higher output and lower demand in December triggered a rise in Italy’s base oils stocks to a seven-month high of 88,000t.The volume was down from more than 110,000 t/month at end-2022 and the beginning of 2023..Italy’s December lube demand rises.Europe’s Nov Grp I base oils supply falls
Italy’s base oils output rose in December at the same time as a seasonal slowdown in domestic demand.Output was still lower than usual, curbing the size of the country’s base oils stocks at the end of the year.A pick-up in spot Group I export cargoes from Italy at the start of this year pointed to surplus supply even with the lower stocks.The surplus volume highlighted weak regional demand at the start of the year and followed a slowdown in Italy's base oils shipments to markets outside Europe in December.The size of the surplus was likely lower than at end-2022 and early last year.A surge in the country’s base oils stocks at that time preceded a wave of spot shipments during the fourth quarter of 2022 and the first quarter of last year.Those cargoes moved to markets like Turkey, Nigeria, and Mideast Gulf.Italy’s supply surplus is set to shrink further following the planned closure of one of its two virgin base oil units. The country’s base oils output of 66,400t in December rose from less than 45,000t the previous month.The volume was lower than usual but still the second highest in eight months.Output fell in the second and third quarters of last year because of extended plant maintenance work.The prolonged drop in output incentivized blenders to line up more regular supplies from other sources.The trend boosted the impact of the subsequent rise in output and the need to find less regular outlets for a larger share of the supplies. The higher output and lower demand in December triggered a rise in Italy’s base oils stocks to a seven-month high of 88,000t.The volume was down from more than 110,000 t/month at end-2022 and the beginning of 2023..Italy’s December lube demand rises.Europe’s Nov Grp I base oils supply falls