Europe July imports from Russia mixed

Europe’s base oils imports from Russia held steadier at lower levels in July.

The lower volumes contrasted with Turkey’s imports from Russia at steadier but higher levels in July.

The pick-up in base oils supplies to Turkey left relatively steady the flow of shipments from Russia to Europe and Turkey combined.

Buyers in Europe and neighbouring markets had braced for a sharp drop in supplies from Russia. The steadier shipments should soften the market impact of that slowdown.

Europe’s base oils imports of 13,760t from Russia in July rose from 10,650t in June and 13,690t in May to a three-month high, government data showed.

The volumes were down sharply from year-earlier levels and from average shipments of more than 23,000 t/month in the first four months of the year.

But the monthly volumes steadied in that narrow range since the sharp dip in imports in May.

The fall in shipments since then cut Europe’s total imports from Russia to 133,300t in the first seven months of the year, down 3pc from almost 138,000t during the same period last year.

Close to half the total volume moved to Latvia and Lithuania.

The fall in shipments since May contrasted with a rise in Turkey’s base oils imports from Russia during the same period.

Its imports of 22,670t from Russia in the three months to July were up from less than 19,000t in the first four months of the year and little more than 7,000t during the same three-month period last year.

The rise in shipments, combined with Europe, boosted total imports from Russia to 174,700t in the first seven months of the year.

The volume was up from 169,800t during the same period last year and the second highest for that period in the last five years.

The rise in shipments contrasted with expectations of a drop in supplies.

A large portion of the supplies to Europe likely moved to markets outside the region.

Even so, the rise in Russian base oils shipments to Turkey and to those other markets freed up more supplies within Europe for regional buyers.