Imports from Bahrain/UAE rise to six-month high
Dip in imports during intervening months coincides with plant-maintenance in Middle East
Europe Group III prices hold firm even with recovery in imports
Europe’s imports of premium-grade base oils from Bahrain and the UAE rose to a six-month high in September as a recovery in shipments from the Middle East gathered pace.
Total imports from Bahrain and the UAE combined came to around 24,000 tonnes in September, government data showed.
The volume rose from around 15,000 tonnes the previous month to the highest since March.
A dip in imports in the intervening months coincided with maintenance work on the Group III base oils units in both Bahrain and the UAE.
The dip in imports tightened Europe’s supply of Group III base oils without the full set of OEM approvals.
Prices for those supplies duly rose relative to prices for Group III supplies with the full set of approvals.
Prices for supplies without the full set of approvals remained firm so far in the fourth quarter of the year even with the recovery in shipments from the Middle East.
Imports from Bahrain and the UAE are likely to get a further boost in November especially, shipping data showed.
Rising supply and firm price levels pointed to the prospect of a price-adjustment to reflect the improving fundamentals.
The firm price levels could alternatively point to signs of increasingly firm demand, keeping supplies balanced-to-tight.