The Netherlands’ base oils and lube output stayed high in October for a fourth month, coinciding with a slowdown in Europe’s lube consumption. .Europe’s Oct lube demand stays weak.The country’s net supply still fell because of a sharp slowdown in imports and firm export volumes.European base oils prices fell sharply in the fourth quarter of the year as supply exceeded weak demand.But the avoidance of a major supply-build in markets like the Netherlands during the final months of the year raised the prospect of more balanced supply fundamentals at the start of this year.The trend would help to cushion against the impact of weaker-than-usual lube demand.It would also leave a smaller buffer for a typical seasonal rise in lube demand later in the first quarter of the year.The Netherlands’ base oils and lube output of 94,000t in October rose from 82,000t the previous month, government data showed..The firm volume supported average production levels at 94,000 t/month in the four months to October. The volume was up from less than 65,000 t/month in the first half of the year.The lower supply in the first half of the year coincided with stronger lube demand in the European market.Base oils prices rose strongly in response, even as a rise in the Netherlands’ base oils imports partially cushioned the impact of the drop in output.The rise in base oils and lube output from the start of the third quarter of the year coincided with a seasonal slowdown in regional lube demand. Europe's economic slowdown compounded the demand weakness.Regional base oils prices fell in response to the weaker fundamentals.But prices for premium-grade base oils maintained a strong premium to Group I base oils until the end of the year.The Netherlands is home to Europe's sole Group II base oils plant.A drop in the Netherlands’ base oils imports in September and October partially countered the impact of the country’s higher output.Base oils exports also held firm, slowing any build-up of surplus supplies..Europe's Sept supply falls from Netherlands, US
The Netherlands’ base oils and lube output stayed high in October for a fourth month, coinciding with a slowdown in Europe’s lube consumption. .Europe’s Oct lube demand stays weak.The country’s net supply still fell because of a sharp slowdown in imports and firm export volumes.European base oils prices fell sharply in the fourth quarter of the year as supply exceeded weak demand.But the avoidance of a major supply-build in markets like the Netherlands during the final months of the year raised the prospect of more balanced supply fundamentals at the start of this year.The trend would help to cushion against the impact of weaker-than-usual lube demand.It would also leave a smaller buffer for a typical seasonal rise in lube demand later in the first quarter of the year.The Netherlands’ base oils and lube output of 94,000t in October rose from 82,000t the previous month, government data showed..The firm volume supported average production levels at 94,000 t/month in the four months to October. The volume was up from less than 65,000 t/month in the first half of the year.The lower supply in the first half of the year coincided with stronger lube demand in the European market.Base oils prices rose strongly in response, even as a rise in the Netherlands’ base oils imports partially cushioned the impact of the drop in output.The rise in base oils and lube output from the start of the third quarter of the year coincided with a seasonal slowdown in regional lube demand. Europe's economic slowdown compounded the demand weakness.Regional base oils prices fell in response to the weaker fundamentals.But prices for premium-grade base oils maintained a strong premium to Group I base oils until the end of the year.The Netherlands is home to Europe's sole Group II base oils plant.A drop in the Netherlands’ base oils imports in September and October partially countered the impact of the country’s higher output.Base oils exports also held firm, slowing any build-up of surplus supplies..Europe's Sept supply falls from Netherlands, US