Europe's June imports from Russia fall

Europe’s base oils imports from Russia fell in June to their lowest in almost two years as a slowdown in shipments gathered pace.

Total imports of 10,650t from Russia in June fell from an already low 13,690t the previous month, government data showed.

The dip in shipments cut total base oils imports to 119,540t in the first half of the year. The volume was down from 121,640t during the same period a year earlier.

The similar volumes masked a marked slowdown in shipments in recent months.

Imports of 53,990t in the second quarter of the year were down 29pc from more than 75,000t during the same period a year earlier.

Europe’s base oils imports had held firm in the first four months of the year, even as buyers began to back off procuring supplies of Russian origin during that period.

The steady volumes partly reflected shipments that had already been lined up earlier in the year. Subsequent imports then slumped after those cargoes had sailed.

The drop in imports from Russia in the second quarter of the year coincided with lower base oils production and a seasonal rise in lube demand in Europe.

The tight fundamentals supported a surge in regional prices, especially of Group I base oils.

The impact of the drop in imports from Russia is likely to be more muted over the coming months.

Group I base oils supply in Italy is likely to rise following the restart of a plant that had been shut for extended maintenance work.

A steady flow of supplies of Russian origin has continued to move to markets like Turkey, covering some of that market’s requirements.

Regional demand is also likely to be lower amid a seasonal slowdown in lube consumption and as slowing economic growth curbs industrial and services activity.