Europe’s Nov exports to N Africa slip

Europe’s base oils exports to North African markets like Egypt fell in November amid a dip in shipments from Italy.

Supplies from Italy fell because of a slump in the country’s base oils output in November.

Italy is typically Europe’s largest base oils supplier for the North Africa market.

The slowdown in Europe’s exports to the region also coincided with the arrival in Egypt of a rare arbitrage cargo from South Korea.

Tightening supplies in Asia-Pacific are likely to curb any more shipments from that region to North Africa anytime soon.

Lower volumes from Italy and a pause in cargoes from Asia-Pacific provided European suppliers with the opportunity to move more shipments to the region in December and early this year.

Lower prices for European base oils added to the attraction of shipments from the region.

There were signs of such a pick-up in European shipments to North Africa in December.

Europe’s total exports to Egypt, Morocco, Algeria and Tunisia combined came to more than 28,000t in November, EU data showed.

The volume fell from a 23-month high of more than 34,000t in October.

The November exports rose from year-earlier levels for a second month, lifting total shipments to 289,330t in the first eleven months of the year.

The volume was still down 6pc from 306,630t during the same period in 2021.

Exports fell from year-earlier levels because of high prices and tight supply in Europe earlier in the year, especially in Italy.

Exports rose in October and November amid rising regional supplies and lower prices.

Still, Europe’s supply and price volatility in recent years boosted the incentive for buyers in markets like North Africa to line up alternative supply sources.

Saudi Arabia was one such source.

An increasingly regular flow of shipments from the Mideast Gulf country moved to Egypt throughout last year.

The rise in shipments from Saudi Arabia displaced some of the North African country’s requirements from Europe.

Unlike the arbitrage supplies from Asia, the trend is likely to be more permanent.