Global base oils exports to key markets in Africa fell to a four-month low in March mostly because of a dip in shipments from the US.The slowdown in flows from the US highlighted those countries’ ongoing reliance on shipments from Europe, whose own supply tightened further this year.Their reliance on Europe, and that region’s tighter supply, raised the prospect of a more volatile flow of shipments over the coming months.The scenario boosted the attraction and need for those markets to line up regular supplies from other sources instead.Total base oils exports to Egypt, Nigeria, South Africa, and Kenya combined fell to around 60,000 tonnes in March, government data showed.The volume fell from close to 70,000 tonnes the previous month and from more than 100,000 tonnes in January and in December 2023.Exports fell in March mostly because of a dip in shipments to Nigeria to a four-month low of less than 11,000 tonnes, down from more than 20,000 tonnes in each of the previous three months.Exports from the US to Nigeria almost paused in March, following shipments of more than 13,500 tonnes to the West African country the previous month.The slowdown in shipments to Nigeria outweighed relatively steady flows to Egypt, and a rise in shipments to South Africa.Exports from Europe accounted for more than 80% of total shipments in March. The share was up from less than 70% during the previous four months, when arbitrage shipments from markets like US and South Korea boosted supplies from alternative sources.The higher share of exports from Europe in March highlighted the irregularity of those arbitrage shipments and the African countries’ reliance on Europe for most of their supplies.That reliance exposed them to the risk of more volatile flows as Europe’s tighter structural supply magnified the impact of any unexpected production issues in the region..Global base oil exports to Middle East stay high in March.Global premium-grade imports from Middle East rise in March
