The Netherlands’ base oils and lube output fell in February to a 14-month low, adding to a widespread slowdown in production of the lubricant feedstock in every major market.Base oils and lube output fell to 71,000t in January, government data showed. The volume fell from a record-high of more than 110,000t the previous month to the lowest since November 2020..The drop in production followed a period of unusually high output levels throughout most of last year.The high production coincided with a period of unusually tight supply of Group I base oils in Europe, especially in first-half 2021. The tight supply boosted demand for Group II base oils in place of Group I. The stronger demand helped to support higher Group II prices at increasingly steep premiums to Group I.The Group II premium to Group I began to narrow from late last year and into the beginning of this year amid improving supply and weaker demand.The high production levels last year followed a round of maintenance work in second-half 2020. Output slumped during the maintenance work. Output this January was closer to levels immediately following completion of that maintenance work..Global base oils – the week ahead
The Netherlands’ base oils and lube output fell in February to a 14-month low, adding to a widespread slowdown in production of the lubricant feedstock in every major market.Base oils and lube output fell to 71,000t in January, government data showed. The volume fell from a record-high of more than 110,000t the previous month to the lowest since November 2020..The drop in production followed a period of unusually high output levels throughout most of last year.The high production coincided with a period of unusually tight supply of Group I base oils in Europe, especially in first-half 2021. The tight supply boosted demand for Group II base oils in place of Group I. The stronger demand helped to support higher Group II prices at increasingly steep premiums to Group I.The Group II premium to Group I began to narrow from late last year and into the beginning of this year amid improving supply and weaker demand.The high production levels last year followed a round of maintenance work in second-half 2020. Output slumped during the maintenance work. Output this January was closer to levels immediately following completion of that maintenance work..Global base oils – the week ahead
