UK base oil output drops to record lows: 4Q 2023

UK base oil and finished lubricant output fell to record lows in the fourth quarter of 2023 following a refinery maintenance, while imports rose as buyers looked to cater to rising demand.

• UK production in the fourth quarter of 2023 dropped 70pc below the 10-year average of 84,200t, according to Government data. This marks the lowest output for a final quarter of the year, since Argus records began.
• Output likely fell because of planned maintenance at ExxonMobil's 407,000 t/yr Group I plant at Fawley, the largest base oil plant in the UK.
• A cut in production likely spurred on a rise in imports as buyers looked to alternative suppliers for material due to tighter domestic availability. Belgium and German imports rose 54pc and 70pc to 31,080t and 10,500t on the year, respectively.
• And competitive base oil spot prices likely supported an uptick in sales which rose on the year in the final quarter of 2023.
• The average Argus assessed Group I SN 150 fob Domestic price, dropped in the final quarter of 2023 by 11.5pc on the year to $1,054/t.

By Christian Hotten