Europe's May imports from Russia fall

Europe’s base oil imports from Russia fell in May to their lowest this year, forcing buyers to turn to other sources to cover their Group I base oil requirements.

Imports of 13,690t from Russia in May fell by more than half from 29,650t the previous month to the lowest since December, EU data showed.

The volume was down from typical levels of close to 20,000 t/month over the past year.

Europe’s base oil imports from Russia had held firm in the first four months of the year, mostly because of an unusual surge in shipments to Lithuania.

The trend outweighed a slump in supplies to more regular outlets like Netherlands and UK.

Even Lithuania’s base oil imports fell in May, dipping to a 14-month low of 2,230t. The volume was down from more than 15,000t the previous month.

The fall in base oil imports coincided with a seasonal rise in regional demand during the second quarter of the year.

Alternative supply options were limited because of several Group I plant closures in Europe over the past year. The prolonged shutdown of a Group I plant in Italy compounded the snug supply.

The tighter supplies slashed availability of spot volumes within the region and for regular overseas buyers in West Africa and the East Mediterranean market.

European Group I base oil prices surged throughout the second quarter of the year in response to the unexpectedly tight supply-demand fundamentals.