The Netherlands’ base oils and lube output rose in July to its highest this year, boosting supply at a time of year when demand faced a seasonal slowdown.Base oils and lube output of 102,000t in July rose from 71,000t the previous month to the highest since December, government data showed..The rise in production outpaced year-earlier levels for the first time this year. It lifted total output to 489,000t in the first seven months of the year. The volume was still down 30pc from 697,000t during the same period last year.This year’s lower output likely reflected the impact of plant maintenance work during the second quarter of the year. Base oils and lube production fell in May to a 20-month low of 17,000t..Europe's June base oils supply edges up.The lower output at that time coincided with a seasonal rise in regional lube demand in Europe.Base oils supply from other regular sources like Italy and Russia was also lower than usual.Regional base oils prices rose sharply in response.A 12pc rise in the Netherlands’ base oils imports in the first half of the year partially countered the drop in production. Imports got a boost from a rise in shipments from Spain and Belgium especially.Spain is home to supplies of Group I, Group II and Group III base oils from domestic refineries and storage terminals.Belgium is the key destination and distribution point for base oils shipments from the US. Most of those supplies consist of Group II base oils.The recovery in the Netherlands’ base oils and lube output in June and July coincided with a seasonal slowdown in lube consumption in Europe. Slowing economic growth compounded the drop in demand.Base oils prices have fallen during the third quarter of the year in response to easing supply tightness and waning demand..Netherlands’ June base oils output rises
The Netherlands’ base oils and lube output rose in July to its highest this year, boosting supply at a time of year when demand faced a seasonal slowdown.Base oils and lube output of 102,000t in July rose from 71,000t the previous month to the highest since December, government data showed..The rise in production outpaced year-earlier levels for the first time this year. It lifted total output to 489,000t in the first seven months of the year. The volume was still down 30pc from 697,000t during the same period last year.This year’s lower output likely reflected the impact of plant maintenance work during the second quarter of the year. Base oils and lube production fell in May to a 20-month low of 17,000t..Europe's June base oils supply edges up.The lower output at that time coincided with a seasonal rise in regional lube demand in Europe.Base oils supply from other regular sources like Italy and Russia was also lower than usual.Regional base oils prices rose sharply in response.A 12pc rise in the Netherlands’ base oils imports in the first half of the year partially countered the drop in production. Imports got a boost from a rise in shipments from Spain and Belgium especially.Spain is home to supplies of Group I, Group II and Group III base oils from domestic refineries and storage terminals.Belgium is the key destination and distribution point for base oils shipments from the US. Most of those supplies consist of Group II base oils.The recovery in the Netherlands’ base oils and lube output in June and July coincided with a seasonal slowdown in lube consumption in Europe. Slowing economic growth compounded the drop in demand.Base oils prices have fallen during the third quarter of the year in response to easing supply tightness and waning demand..Netherlands’ June base oils output rises
