Netherlands’ April base oil, lube output holds firm

The Netherlands' base oils and lube output held firm in April, at a time when European base oil supply was unusually tight.

Output of 98,000t in April edged down from 100,000t in March, government data showed. Production has remained above 90,000t every month since the start of the year. Output had never exceeded 90,000 t/month since at least 2013.

The sustained rise in output lifted total production to 386,000t in January-April, up from 167,000t during September-December when there was plant maintenance in the country.

The rise in production in April coincided with a fall in Group I base oil supply in Europe because of a heavy round of plant maintenance in April and May.

The tighter availability and surge in prices for Group I base oils at that time narrowed their discount to Group II base oils, especially for heavy grades. The trend prompted regional blenders to seek more premium-grade base oils instead.

The Netherlands' supply were further boosted by higher imports in April that were at their highest since 2018. Imports also exceeded exports for the first time in six months.

The Netherlands' base oils and lube consumption rebounded in April to 87,000t. The volume rose from more typical monthly levels of 21,000t in March to their highest in a year. Most of the consumption was categorised under refineries. The last time that consumption for this category rose sharply was in the third quarter of last year, when it coincided with some plant maintenance.

By Iain Pocock