US May base oils exports to Africa rise

US base oil exports to Africa extended their rise in May, while shipments to India almost ground to a halt.

Base oil exports of 190,850bl (26,880t) to Africa in May rose from 135,130bl the previous month, government data showed.

The volume was the second highest in more than two years. The highest in that time had been in March.

The surge in supplies boosted Africa-bound exports from the US to 749,360bl in the first five months of the year.

The volume was up almost threefold from 271,960bl during the same period last year.

The rise in US base oil exports to Africa helped to plug a shortfall caused by a drop in supplies from Europe.

That region, combined with cargoes of Russian origin, are typically the main sources of base oils supply for African markets like Nigeria.

Plant maintenance work in Europe and growing difficulty lining up shipments of Russian origin cut flows to Africa from those sources.

Firm demand in Africa for US supplies contrasted with more muted interest in India.

Buyers in that market were instead securing sufficient supplies from Asia-Pacific and Mideast Gulf at more competitive prices than cargoes of US origin.

A sharp fall in India’s demand for very light grade base oils also cut interest in supplies from the US. A large portion of US arbitrage shipments to India typically include very light grade base oils.