Europe's July exports to Nigeria rise

Europe’s base oils exports to Nigeria recovered in July to a four-month high amid signs of easing supply tightness in the European market.

Exports of 10,520t in July rose from less than 5,000t in each of the previous three months, government data showed.

The slide in shipments during that period added to the fall in total exports to Nigeria to 59,760t during the first seven months of the year.

The volume was down from 75,840t during the same period last year and the lowest for that period in six years.

Europe’s base oils exports to Nigeria slowed sharply in the second quarter of the year in response to unexpectedly tight supply and surging prices for those supplies.

Supply tightened following the unexpected slump in shipments from Russia to Europe from May onwards.

The fall in shipments cut a key source of supplies of Group I base oils for the European market.

The prolonged shutdown of a major Group I base oils unit in Italy compounded the tightness and slashed the surplus available for export markets.

A halt in base oils shipments from Italy to Nigeria in the first seven months of the year contrasted with exports of more than 9,900t to the west African country during the same period last year.

The drop in supplies to Nigeria was compounded by a fall in shipments of Russian origin to the country.

A surge in shipments from the US to Nigeria in the first seven months of the year helped to cover some of the supply-gap.

Europe’s supply tightness flipped back to surplus during the third quarter of the year as plant maintenance in the Mediterranean region ended.

Rising Russian shipments to Turkey also freed up more European base oils for other markets.

Slowing lube demand in Europe added to the surplus.

Nigeria had previously struggled to cover its base oils requirements in recent months.

The country now faced competition from a growing number of suppliers seeking to move their surplus shipments to the country.

European exports to Nigeria got a boost in July from the addition of a large cargo of Polish origin.

The last time a cargo moved from Poland to Nigeria was last November.