The Netherlands’ base oils output rebounded in May, boosting Europe’s premium-grade base oils supplies at a time when demand faced a seasonal pick-up.Base oils and lube output of 85,000 tonnes in May rose from just 11,000 tonnes in March and April combined, government data showed.Output dipped during those two months because of plant maintenance work. It rose in May following the completion of the maintenance work.The rise in output coincided with a surge in Europe’s base oils imports from the US in May.The Netherlands and the US are the two main sources of Group II base oils for the European market.The rise in supplies from both sources duly boosted availability of premium-grade base oils in the region and helped to meet a seasonal rise in demand.It also provided blenders with alternative supply options in the face of increasingly tight availability of Group I base oils in the region.Supply tightened as plant maintenance work in the second quarter compounded the impact of the closure of a Group I base oils unit earlier in the year.Europe’s base oils prices reflected those diverging supply dynamics.The premium of Europe Group II prices over Group I prices continued to edge lower during the second quarter of the year to its narrowest in more than eight months.The narrower price premium, as well as steady availability of supply, added to the attraction for blenders to use more premium-grade base oils in their formulations.The Netherlands’ base oils exports to markets beyond Europe fell in May even as output rose.The slowdown likely reflected a focus on replenishing stocks and covering a seasonal pick-up in demand within the European market first.Even so, the recovery in the Netherlands’ base oils output left the European market better positioned to boost shipments to more distant outlets like Africa.It also left the region better positioned to manage any weather-related disruptions to supplies from the US during the Atlantic hurricane season..Europe’s May Group III base oils supply edges down.US’ May base oils exports to Europe fall
The Netherlands’ base oils output rebounded in May, boosting Europe’s premium-grade base oils supplies at a time when demand faced a seasonal pick-up.Base oils and lube output of 85,000 tonnes in May rose from just 11,000 tonnes in March and April combined, government data showed.Output dipped during those two months because of plant maintenance work. It rose in May following the completion of the maintenance work.The rise in output coincided with a surge in Europe’s base oils imports from the US in May.The Netherlands and the US are the two main sources of Group II base oils for the European market.The rise in supplies from both sources duly boosted availability of premium-grade base oils in the region and helped to meet a seasonal rise in demand.It also provided blenders with alternative supply options in the face of increasingly tight availability of Group I base oils in the region.Supply tightened as plant maintenance work in the second quarter compounded the impact of the closure of a Group I base oils unit earlier in the year.Europe’s base oils prices reflected those diverging supply dynamics.The premium of Europe Group II prices over Group I prices continued to edge lower during the second quarter of the year to its narrowest in more than eight months.The narrower price premium, as well as steady availability of supply, added to the attraction for blenders to use more premium-grade base oils in their formulations.The Netherlands’ base oils exports to markets beyond Europe fell in May even as output rose.The slowdown likely reflected a focus on replenishing stocks and covering a seasonal pick-up in demand within the European market first.Even so, the recovery in the Netherlands’ base oils output left the European market better positioned to boost shipments to more distant outlets like Africa.It also left the region better positioned to manage any weather-related disruptions to supplies from the US during the Atlantic hurricane season..Europe’s May Group III base oils supply edges down.US’ May base oils exports to Europe fall