The UK’s base oils output slipped in August from the previous month even as domestic and overseas demand rose to a 10-month high.Lower output coincided with a sustained rise in base oils imports. These accounted for a growing share of the UK’s supply.The trend pointed to growing domestic demand for premium-grade base oils supplied from overseas markets and waning consumption of Group I supplies originating from domestic sources.Base oils output of 28,380t in August fell from 39,340t the previous month, government data showed. The volume was still well up from average output of less than 17,000 t/month in the four months to June..Output fell even as the UK’s total refined products output rose in August to a three-month high. Production of diesel and jet fuel remained unusually high as a share of total output.The trend suggested more active moves to tweak refinery production to maximise diesel output and trim base oils output rather than factors such as plant maintenance work impacting production levels.The drop in base oils output coincided with a seasonal slowdown in lubricating oil demand in Europe and a steady drop in base oils prices in the region. The trend incentivized refiners to trim base oils production to limit stocks and cover term commitments only.The lower output coincided with a rise in base oils imports in August to a four-month high..UK's August base oils exports rise.The higher volumes cushioned the fall in domestic supply, or output plus imports, to 64,200t. The volume was down from a five-month high of 68,520t in July.The higher imports boosted their share of domestic supply to 40pc of the total volume in August and to 42pc in the first eight months of the year. The share was up from 31pc in 2021.A large portion of the imports originated from countries that supply premium-grade base oils.The slight fall in domestic supply contrasted with a rise in demand.Domestic and overseas demand combined rose in August to a 10-month high of 67,870t.Demand exceeded domestic supply for the third time in four months. The trend slowed any supply-build at a time when lube demand faced the prospect of a more prolonged slowdown..UK’s July base oils output rises
The UK’s base oils output slipped in August from the previous month even as domestic and overseas demand rose to a 10-month high.Lower output coincided with a sustained rise in base oils imports. These accounted for a growing share of the UK’s supply.The trend pointed to growing domestic demand for premium-grade base oils supplied from overseas markets and waning consumption of Group I supplies originating from domestic sources.Base oils output of 28,380t in August fell from 39,340t the previous month, government data showed. The volume was still well up from average output of less than 17,000 t/month in the four months to June..Output fell even as the UK’s total refined products output rose in August to a three-month high. Production of diesel and jet fuel remained unusually high as a share of total output.The trend suggested more active moves to tweak refinery production to maximise diesel output and trim base oils output rather than factors such as plant maintenance work impacting production levels.The drop in base oils output coincided with a seasonal slowdown in lubricating oil demand in Europe and a steady drop in base oils prices in the region. The trend incentivized refiners to trim base oils production to limit stocks and cover term commitments only.The lower output coincided with a rise in base oils imports in August to a four-month high..UK's August base oils exports rise.The higher volumes cushioned the fall in domestic supply, or output plus imports, to 64,200t. The volume was down from a five-month high of 68,520t in July.The higher imports boosted their share of domestic supply to 40pc of the total volume in August and to 42pc in the first eight months of the year. The share was up from 31pc in 2021.A large portion of the imports originated from countries that supply premium-grade base oils.The slight fall in domestic supply contrasted with a rise in demand.Domestic and overseas demand combined rose in August to a 10-month high of 67,870t.Demand exceeded domestic supply for the third time in four months. The trend slowed any supply-build at a time when lube demand faced the prospect of a more prolonged slowdown..UK’s July base oils output rises