Italy’s base oils output fell to a three-month low in May, adding to Europe’s tighter availability of Group I supplies at a time of year when demand faced a seasonal rise.Base oils consumption by contrast rose in May from the previous month, triggering a drop in the country’s base oils stocks.But consumption fell from year-earlier levels for a second month and at a steeper pace than the drop in base oils production.The drop in consumption showed signs of reflecting a slowdown in supplies for domestic blenders and for buyers in markets outside Europe.The impact on buyers within Europe was more muted.The trend pointed to moves by Italy’s domestic blenders to diversify their feedstock supply sources well ahead of the closure of a Group I base oils plant in the country earlier this year.It also highlighted the squeeze on Europe’s Group I supplies for overseas markets, especially for spot volumes.Europe’s unusually firm Group I export base oil prices relative to domestic prices in recent months reflected that tightness.Italy’s base oils output of 57,500 tonnes in May fell from 65,100 tonnes in April and by 5% from year-earlier levels, government data showed.The country’s consumption of those supplies by contrast rebounded to 66,200 tonnes in May, up from less than 42,200 tonnes the previous month.Inventories covered the shortfall between production and consumption, triggering a fall in base oils stocks.The drop in stocks kept monthly inventories below 75,000 tonnes for the fourth time this year. The country’s base oils stocks never fell to that level and averaged more than 90,000 tonnes/month throughout all of 2023. While base oils consumption rose in May from April, it fell by 9% from year-earlier levels.The contraction lagged an even steeper fall in Italy’s domestic base oils consumption in May.It also coincided with a sustained fall in Italy’s base oils exports to markets outside the EU in each of the last five months to April.The slowdown in shipments to those markets contrasted with a rise in Italy's total base oils exports in the first quarter of the year..Italy’s May lube demand falls.UK’s April base oils supply stays high
Italy’s base oils output fell to a three-month low in May, adding to Europe’s tighter availability of Group I supplies at a time of year when demand faced a seasonal rise.Base oils consumption by contrast rose in May from the previous month, triggering a drop in the country’s base oils stocks.But consumption fell from year-earlier levels for a second month and at a steeper pace than the drop in base oils production.The drop in consumption showed signs of reflecting a slowdown in supplies for domestic blenders and for buyers in markets outside Europe.The impact on buyers within Europe was more muted.The trend pointed to moves by Italy’s domestic blenders to diversify their feedstock supply sources well ahead of the closure of a Group I base oils plant in the country earlier this year.It also highlighted the squeeze on Europe’s Group I supplies for overseas markets, especially for spot volumes.Europe’s unusually firm Group I export base oil prices relative to domestic prices in recent months reflected that tightness.Italy’s base oils output of 57,500 tonnes in May fell from 65,100 tonnes in April and by 5% from year-earlier levels, government data showed.The country’s consumption of those supplies by contrast rebounded to 66,200 tonnes in May, up from less than 42,200 tonnes the previous month.Inventories covered the shortfall between production and consumption, triggering a fall in base oils stocks.The drop in stocks kept monthly inventories below 75,000 tonnes for the fourth time this year. The country’s base oils stocks never fell to that level and averaged more than 90,000 tonnes/month throughout all of 2023. While base oils consumption rose in May from April, it fell by 9% from year-earlier levels.The contraction lagged an even steeper fall in Italy’s domestic base oils consumption in May.It also coincided with a sustained fall in Italy’s base oils exports to markets outside the EU in each of the last five months to April.The slowdown in shipments to those markets contrasted with a rise in Italy's total base oils exports in the first quarter of the year..Italy’s May lube demand falls.UK’s April base oils supply stays high
