Europe’s Sept imports from Russia fall

Europe’s base oils imports from Russia fell in September to the second-lowest level in two years amid weakening demand and improving availability of supplies from other sources in the region.

Imports from Russia face the prospect of halting from early next year when sanctions on oil products from the country come into effect.

Imports of 10,160t from Russia in September fell from 12,860t the previous month and by 42pc from year-earlier levels, EU data showed.

The drop in shipments for a fifth month cut Europe’s total imports from Russia to 155,140t in the first nine months of the year. The volume was down 8pc from 169,230t during the same period last year.

The muted slowdown reflected the rise in imports from Russia in the first quarter of the year for shipments that had been lined up several months earlier.

Shipments from Russia fell sharply from the second quarter of the year as buyers began to line up alternative sources of supply.

Imports of 58,300t in the five months to end-September were down a steeper 42pc from more than 100,000t during the same period last year.

Those moves to find alternative supplies faced more difficulty in the first half of the year, when base oils supply in Europe was unexpectedly tight.

The supply tightness eased from the start of the third quarter as availability improved from sources like Italy and UK.

Both markets are key sources of Group I base oils. Most of Russia’s base oils exports consist of Group I base oils.

Falling lube demand in the region curbed further buyers’ requirements for additional base oils supplies.

Even with the improving fundamentals, Europe’s imports from Russia continued to hold in a 9,000-13,000 t/month range since May.

The steady volumes suggested that some European buyers had yet to line up alternative supply sources less than six months before the imposition of sanctions would put a halt to such shipments from Russia.

The slowdown in European demand prompted the redirection of Russian base oils shipments to alternative outlets such as Turkey and Mideast Gulf.

One such shipment was set to reach the Mideast Gulf in late November.