Global base oils exports to key markets in Africa fell to an eight-month low in May amid dwindling availability of spot shipments.Supplies tightened as a seasonal rise in demand in the US and Europe at the start of the second quarter of the year coincided with a round of plant-maintenance work.The tighter fundamentals prompted refiners to focus on covering requirements in their domestic markets.Shipments to outlets like Nigeria slumped in response.The dynamic could reverse in the third quarter of the year as demand in US and Europe faces a seasonal slowdown and supply recovers following the completion of plant-maintenance.Total base oils exports to Egypt, Nigeria, South Africa and Kenya combined came to around 67,000 tonnes in May, government and shipping data showed..The volume fell from around 93,000 tonnes the previous month to the lowest since last September.Most of the shipments originated from the US and Europe, along with some supplies from Asia.Exports fell in May mostly because of a slump in supplies from the US to close to 12,000 tonnes.The volume fell from typical levels of more than 28,0000 tonnes/month over the past year to a ten-month low.The dip in shipments highlighted the intermittent nature of supplies from the US.That kind of volatility complicated procurement plans for buyers and boosted the attraction of relying more on sources with a more stable flow of supplies.Europe’s base oils exports to Africa also fell in May from the previous month but remained higher than typical levels over the past year.The trend left supplies from Europe accounting for some 80% of total shipments to those key markets in Africa even at a time when its supply-demand fundamentals were also tighter.The dip in total exports had the largest impact on Nigeria, with shipments falling to a one-year low.The West African country is a key outlet for surplus spot volumes in overseas markets.A recent pick-up in shipments from Argentina to Nigeria this year also paused in May, compounding the slowdown.A seasonal slowdown in demand during Nigeria’s rainy season could cushion the impact of the dip in shipments.At the same time, a resumption of flows from Argentina to Nigeria at end-June, and a shipment from Egypt in July pointed to ongoing buying interest in the country..Global exports to Middle East fall in June.US’ May base oils exports rise.Saudi Arabia’s June Yanbu/Jeddah base oils exports rise.Base Oil News stories and analyses also available on the ICIS platform
