Italy’s base oil output recovered in October

Italian base oil production returned to year earlier levels in October, after four months of declines caused by maintenance at Eni's Livorno refinery.

Base oil output rose by 40pc from September and was 0.5pc higher on the year at 80,600t in October, government data show.

Production was sporadic throughout 2023, with Eni's 600,000 t/yr Livorno refinery undertaking a three-month maintenance, which ended on 31 July. The refinery failed to restart fully after the maintenance and had no base oils available until mid-September.

The maintenance caused a fall in base oil output of 24pc on the year in the third quarter, and a fall of 42pc on the quarter to 187,500t.

The end of the maintenance and the return of deliveries of seaborne crude to the refinery in September allowed production to recover to year earlier levels.

An increase in output drove exports to rise by 3.4pc on the year to 78,200t.

Exports to Egypt fell by 80.7pc to 2,700t, but this was offset by a rise in exports to the UAE of 5,400t to 5,600t, and to Spain, which increased by 2,600t to 4,800t, on the year, in October.

Italian exports to France, Turkey and Morocco also rose — by 43pc, 44pc and 20pc, to 6,420t, 7,930t and 4,300t, respectively, over the same time period.

Domestic sales increased on the month and the year by 2.9pc and 10pc, respectively, to 35,800t in October 2023, spurred on by falling spot prices.

Argus-assessed Group I SN 150 spot supplies on a fob NWE domestic basis fell by 21pc on the year to average $1,312/t, incentivising increased purchases.

By Christian Hotten and Gabriella Twining