Italian base oil output drops in 1Q

Italian base oil production fell in the first quarter of this year compared with the same period of 2023, driven by a planned shutdown of Eni's 600,000 t/yr Livorno Group I plant that began on 26 January.

• The closure of the Livorno plant pushed Italian base oil output down by 16pc on the year in January-March, according to latest government figures. The plant accounts for an estimated 13pc of Europe's Group I nameplate capacity.
• The decline in domestic production incentivised overseas buyers to secure export volumes in anticipation of higher prices. As a result, Italian base oil exports increased by 6.5pc on the year in the first quarter. Italian suppliers cleared excess stocks to cater for the rise in export demand.
• Exports to Morocco jumped by 8,700t on the year to 16,900t in the first quarter. Exports to Saudi Arabia rose by 1,500t to 3,900t.
• The Argus-assessed export spot price for Group I SN 150 reached $905/t by the end of March, up by 7pc from the start of the year.

By Christian Hotten