The Netherlands’ base oils and lube output fell in March to its lowest since late-2020 at a time when buyers in Europe were scouring for sufficient supplies to cover their requirements.
Base oils and lube output of 69,000t in March fell from 84,000t the previous month, government data showed. The volume was the lowest since November 2020.
Output of 224,000t in the first three months of the year fell by 28pc from 312,000t during the fourth quarter of last year to its lowest since the fourth quarter of 2020.
Output had been unusually low at that time in 2020 because of plant maintenance work during the second half of the year.
The sustained drop in monthly output so far this year has coincided with the unexpected drop in availability of a swathe of Group I base oil supplies from Russia.
Planned and unexpected maintenance work also cut base oil production levels at other plants in Europe during the first and second quarters of the year.
Tighter supplies of Group I base oils in Europe have triggered a surge in prices and boosted interest in using premium-grade base oils in place of Group I.
Besides the Netherlands, Europe’s key source of Group II base oils is the US.
Supply in that market has also tightened as tighter feedstock availability and surging diesel prices incentivize refiners to focus on producing more of the motor fuel.
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