Europe’s base oils exports to markets outside the region rose in January from the previous month at a time of year when waning regional demand boosts surplus supply.Exports fell from year-earlier levels for a second month, pointing to a smaller surplus to clear or to rising stocks within the region.A drop in Europe’s Group I base oils export prices at the start of the year facilitated the removal of the surplus volumes.It also raised the prospect of a pick-up in shipments through the rest of the first quarter of the year.Such a move would repeat a pattern in each of the previous three years when Europe’s exports rose strongly and peaked in the first four months of the year.Any change in that pattern could compound signs of tighter supply in markets like the Mideast Gulf.It would also provide the opportunity for shipments from Russia to cover any drop in supplies.Total base oils exports to non-EU markets rose to close to 280,000t in January, up from less than 240,000t the previous month, government data showed.The volume fell by 5pc and for a second month from year-earlier levels.The rise in exports from December included a pick-up in shipments to South Africa and Singapore.The closure of Group I plants in South Africa and Asia increased those regions’ requirements for supplies from other sources like Europe.Europe’s base oil exports to the Mideast Gulf fell in January from the previous month and from year-earlier levels when a swathe of arbitrage shipments moved to the region.A slowdown in shipments to the Mideast Gulf was likely to continue, even if Europe’s exports extended their rise, as vessel operators sought to avoid the Red Sea region.The move increased the Mideast Gulf market’s reliance on other sources instead to cover its requirements for high-quality base oils.It also reduced the number of outlets for any arbitrage shipments from Europe to markets like Nigeria..Saudi Arabia’s Feb Yanbu/Jeddah exports fall.S Korea Feb base oil exports to UAE rise
Europe’s base oils exports to markets outside the region rose in January from the previous month at a time of year when waning regional demand boosts surplus supply.Exports fell from year-earlier levels for a second month, pointing to a smaller surplus to clear or to rising stocks within the region.A drop in Europe’s Group I base oils export prices at the start of the year facilitated the removal of the surplus volumes.It also raised the prospect of a pick-up in shipments through the rest of the first quarter of the year.Such a move would repeat a pattern in each of the previous three years when Europe’s exports rose strongly and peaked in the first four months of the year.Any change in that pattern could compound signs of tighter supply in markets like the Mideast Gulf.It would also provide the opportunity for shipments from Russia to cover any drop in supplies.Total base oils exports to non-EU markets rose to close to 280,000t in January, up from less than 240,000t the previous month, government data showed.The volume fell by 5pc and for a second month from year-earlier levels.The rise in exports from December included a pick-up in shipments to South Africa and Singapore.The closure of Group I plants in South Africa and Asia increased those regions’ requirements for supplies from other sources like Europe.Europe’s base oil exports to the Mideast Gulf fell in January from the previous month and from year-earlier levels when a swathe of arbitrage shipments moved to the region.A slowdown in shipments to the Mideast Gulf was likely to continue, even if Europe’s exports extended their rise, as vessel operators sought to avoid the Red Sea region.The move increased the Mideast Gulf market’s reliance on other sources instead to cover its requirements for high-quality base oils.It also reduced the number of outlets for any arbitrage shipments from Europe to markets like Nigeria..Saudi Arabia’s Feb Yanbu/Jeddah exports fall.S Korea Feb base oil exports to UAE rise
