Europe’s Group III base oils supply held firm in May as a jump in shipments from Asia countered a drop in flows from the Middle East.The region's total supply came to close to 140,000 tonnes in May, government and port data showed..The volume was similar to March and down slightly from around 143,000 tonnes in April.Supplies held steady in May even as shipments from the Middle East fell to a seven-month low.The slowdown coincided with maintenance work on Group III units in Bahrain and the UAE during the second quarter of the year.The drop in shipments from the Middle East contrasted with steady flows from Spain, and a surge in imports from Asia to a two-year high.Europe’s Group III supply showed signs of falling in June because of a dip in shipments from Spain.Firm export volumes from Asia and the arrival of several shipments from the Middle East showed signs of cushioning the drop in supplies that month.Supplies could also stay rangebound in July, supported by firm volumes from Asia and signs of a recovery in shipments from Spain. Those supplies would help to cushion signs of another slowdown in the arrival of shipments from the Middle East this month.The dynamic, following Europe’s steady supply of premium-grade base oils in the three months to May, highlighted the region’s large number of sources of Group III base oils.That diversity contrasted with the US, whose Group III supplies are more reliant on shipments from the Middle East and South Korea.A marked change in shipments from any one of those sources duly had a larger impact on US Group III base oils supplies.That scenario materialized in May, when US Group III base oils imports fell sharply because of a steep drop in shipments from the Middle East..US’ May base oils imports fall.S Korea’s June base oils exports rise.Europe April Grp III base oils supply falls
