Singapore’s base oils exports steadied in the four weeks to 11 February, supported by a recovery in shipments from domestic production to the highest level in more than a month.

Total exports held at around 156,000 tonnes, edging up from 154,000 tonnes the previous week, Enterprise Singapore data showed.

The volume remained below typical monthly levels of more than 175,000 tonnes in the fourth quarter of last year and above 165,000 tonnes in the four weeks to end-January.

Exports stayed lower despite the start-up of Singapore’s expanded base oils production capacity at the end of the third quarter of last year.

Even so, any extension of the recovery in shipments seen over the past week could point to improving domestic production levels.

Key Highlights

·         Domestic exports accounted for 85% of total shipments, up from 78% the previous week and the highest share in more than a month.

·         Domestic exports to the UAE resumed for the first time in two months, with volumes the largest since June.

·         A larger shipment moved from Singapore to the UAE in December, but it consisted entirely of re-exported supplies.

·         Exports to Asia remained resilient, with shipments to southeast Asia and India edging up while flows to China eased from firm levels.

Market Repercussions

Singapore’s domestic base oils exports have trended lower since early December, with intermittent rebounds failing to exceed previous highs.

Any breakout above that trend would add to signs of a more durable pick-up in domestic production levels.