Global base oils exports to key markets in Africa rose to a nine-month high in October amid a simultaneous jump in shipments from the US and Europe.Total exports to Egypt, Nigeria, South Africa and Kenya combined came to close to 99,000 tonnes in October, government and shipping data showed.The volume rose from less than 60,000 tonnes the previous month to the highest since January.The supplies originated mostly from Europe and US, as well as shipments from some other sources like Asia.The rise in exports from Europe in October mostly reflected a rebound in shipments to South Africa.The pick-up in flows balanced out a slump in shipments to the country the previous month.Most of the supplies likely consisted of regular term shipments.The rise in exports from the US in October reflected a sustained surge in flows to markets like Nigeria, combined with steadier shipments to more regular outlets like South Africa.Most of the supplies to markets like Nigeria consisted of spot volumes.The dynamic reflected signs of more concerted moves in the US than in Europe to clear surplus volumes.Such moves could point to a larger volume of surplus supplies in the US than in Europe.They could also reflect a focus in the US on clearing any surplus volumes earlier than usual to limit the size of any supply-build during the final months of the year.US base oils export prices fell sharply in September and October, facilitating such a strategy.US export prices then steadied from around mid-November, pointing to easing pressure from surplus supplies.The rise in arbitrage shipments from the US to Africa raised the prospect of covering more of the region’s requirements and curbing buying interest in any subsequent pick-up in surplus volumes from Europe.The rise in arbitrage shipments from the US also highlighted the ongoing attraction of supplies from Europe for buyers seeking more regular supplies.Europe’s less competitive base oils prices facilitated more arbitrage opportunities for US suppliers during the second half of the year.But the volatility of shipment volumes from the US highlighted the availability of larger volumes only when that market had surplus volumes to clear..Global exports to Middle East rise in Oct.US’ Oct base oils/lube exports rise
Global base oils exports to key markets in Africa rose to a nine-month high in October amid a simultaneous jump in shipments from the US and Europe.Total exports to Egypt, Nigeria, South Africa and Kenya combined came to close to 99,000 tonnes in October, government and shipping data showed.The volume rose from less than 60,000 tonnes the previous month to the highest since January.The supplies originated mostly from Europe and US, as well as shipments from some other sources like Asia.The rise in exports from Europe in October mostly reflected a rebound in shipments to South Africa.The pick-up in flows balanced out a slump in shipments to the country the previous month.Most of the supplies likely consisted of regular term shipments.The rise in exports from the US in October reflected a sustained surge in flows to markets like Nigeria, combined with steadier shipments to more regular outlets like South Africa.Most of the supplies to markets like Nigeria consisted of spot volumes.The dynamic reflected signs of more concerted moves in the US than in Europe to clear surplus volumes.Such moves could point to a larger volume of surplus supplies in the US than in Europe.They could also reflect a focus in the US on clearing any surplus volumes earlier than usual to limit the size of any supply-build during the final months of the year.US base oils export prices fell sharply in September and October, facilitating such a strategy.US export prices then steadied from around mid-November, pointing to easing pressure from surplus supplies.The rise in arbitrage shipments from the US to Africa raised the prospect of covering more of the region’s requirements and curbing buying interest in any subsequent pick-up in surplus volumes from Europe.The rise in arbitrage shipments from the US also highlighted the ongoing attraction of supplies from Europe for buyers seeking more regular supplies.Europe’s less competitive base oils prices facilitated more arbitrage opportunities for US suppliers during the second half of the year.But the volatility of shipment volumes from the US highlighted the availability of larger volumes only when that market had surplus volumes to clear..Global exports to Middle East rise in Oct.US’ Oct base oils/lube exports rise