US’ July base oils exports to Africa rise

US base oils exports to Africa rose in July amid a steady flow of large shipments to Nigeria.

The surge in supplies to the region contrasted with an ongoing slump in shipments to India.

Base oils exports of 184,810bl (26,030t) to Africa in July rose by more than 75pc from 103,360bl the previous month, government data showed.

The wave of shipments boosted total exports to Africa to 1.04mn bl in the first seven months of the year, more than double year-earlier levels of 394,580bl.

Shipments to Nigeria accounted for almost 70pc of the volume.

The country typically sources most of its base oils supplies from Europe and Russia. But tight supply in Europe and a slowdown in exports from Russia this year curbed availability from those regions.

High freight rates complicated the possibility of moving surplus supplies from Asia-Pacific to Africa.

The flow of shipments from US to Africa could change again over the coming months as lower prices and improving availability in Europe make that region a more viable source of supplies.  

US base oils exports to India held at less than 500bl in July for a second month.

Total exports of less than 1,500bl to the country in the three months to July contrasted with shipments of more than 295,000bl during the previous three months.

The trend reflected an open arbitrage to India at the start of the year. The arbitrage then shut abruptly before the end of the first quarter amid surging crude oil prices and tightening US base oils supply.

Indian demand for very-light grade base oils also fell sharply during the first half of the year. The trend cut further buyers’ interest in any arbitrage shipments.