Europe Group III imports from Mideast Gulf fall

Europe’s imports of premium-grade base oils from the Mideast Gulf fell in June for a sixth month in seven amid healthy regional availability and strong demand in other markets like the US.

Total base oils imports from the UAE and Bahrain combined came to 13,300t in June, government data showed.

The volume edged up from 13,080t the previous month but was down 63pc from year-earlier levels.

The slump in imports for a fourth straight month cut total shipments to 112,010t in the first half of the year. The volume was down 32pc from more than 163,600t during the same period last year.

Including Qatar, Europe’s total imports of 227,940t in first-half 2022 were down 30pc from 326,210t during the same period last year.

Qatar, the UAE and Bahrain are homes to base oil plants that produce Group III and Group III+ base oils.

European base oils prices surged in the first half of the year as tighter-than-expected supply outweighed weak demand.

The rise in prices reflected more the tight availability of Group I base oils than Group III base oils.

Regional availability of premium-grade supplies was more balanced because of steady production at Europe’s Group III base oils plants during the first half of the year.

Their steady output contrasted with a slump in production during the same period last year because of overlapping plant maintenance work.

European Group III base oils prices rose less steeply than Group I prices in the first half of the year because of the more balanced supply.

The smaller price increase, more balanced supply and strong demand in the US especially boosted the attraction for refiners in the Mideast Gulf to move more supplies to other markets.