Global base oils exports to key markets in Africa stayed unusually high in January for the third time in four months amid a sustained pick-up in shipments from the US.Total exports to Egypt, Nigeria, South Africa and Kenya combined rose to more than 105,000 tonnes in January, government data showed..The shipments mostly originated from US and Europe.The volume rose from less than 80,000 tonnes in December and held above the 100,000 tonnes level for the third time in four months.Before October, the last time exports exceeded the 100,000 tonnes/month level was in January 2024.The sustained rise in shipments lifted total exports to almost 410,000 tonnes in the four months to January.The volume was up from less than 300,000 tonnes during the same period a year earlier and the highest four-month volume since first-half 2022.The rise in exports triggered a sharp increase in flows to Nigeria especially and highlighted the growing role of markets like West Africa as outlets for surplus supplies from the US.The surplus cargoes from the US had previously been more sporadic, leaving buyers in markets like Nigeria and Egypt reliant on flows from Europe to cover their regular requirements.The growing regularity of the shipments from the US could instead prompt buyers to line up longer-term contracts for the supplies.The growing regularity of the shipments partly reflected the protracted fall in the US’ domestic base oils and lube consumption in recent years and subsequent rise in surplus supply.The structural change in supply-demand dynamics and persistent surplus supply in turn boosted the attraction for US suppliers to line up longer-term agreements with buyers in markets like West Africa.The structural rise in surplus supply in the US contrasted with tightening availability and higher prices for base oils supplies in Europe.The dynamic added to the attraction for buyers in Africa and sellers in the US to line up longer-term supply agreements..US’ Jan base oils exports hold steady.Global exports to Middle East rise in Feb.Saudi Arabia Feb Yanbu/Jeddah exports fall
