Europe’s Feb base oil imports from Russia slip

Europe and Turkey’s base oil imports from Russia held firm in February as buyers sought to build stocks ahead of plant maintenance in Europe and Russia over the following months.

Imports of 22,260t from Russia in February edged down from an eight-month high of 25,660t in January, provisional EU data showed.

Imports had averaged just under 20,000 t/month in 2021.

There had been steady demand for Russian base oils at the start of the year. Tighter availability of spot volumes in Europe, and the prospect of even tighter supply over the following months, had spurred firm interest in the supplies.

The February shipments were likely procured from Russian producers many months earlier. They were then shipped from the producers to export outlets, and taken from there to their final destination in Europe.

The relatively long period of time between procurement and delivery of the supplies suggests that these flows were likely to have continued at least into the month of March.

A subsequent slowdown in such shipments in the second quarter would coincide with the planned and unexpected plant maintenance work in Europe.

European base oil prices have surged in recent weeks partly in response to already-limited availability and expectations that supply will tighten further amid dwindling flows from Russia.