Europe March imports from Russia rise

Europe’s base oil imports from Russia climbed in March to a 10-month high amid a typical seasonal rise in shipments ahead of the spring oil-change season.

Imports of 25,930t from Russia in March rose from 17,950t the previous month and by 50pc from year-earlier levels, EU data showed.

The higher volumes lifted total imports to 65,550t in the first three months of the year.

The volume was up 43pc from 45,720t the same time last year and the third-highest quarterly volume in more than four years.

Most of the volume consisted of Group I base oils.

The rise in supplies highlighted the challenge that European buyers faced to find alternative volumes to replace the shipments.

The flow of shipments from Russia to Europe has fallen sharply in recent weeks as procurement of the supplies has become increasingly complicated.

Shipments that have moved to Europe were likely procured before second-half February.

Alternative sources of Group I base oils in Europe are increasingly limited following the closure of several plants last year.

A major plant in Italy has been offline since late last year. The timing of its restart remains unclear.

Regional Group I base oil price have surged in response to the tightening availability of supplies.

Prices have risen even faster than crude and diesel prices, reflecting concern about that tightness. The Group I premium to gasoil has climbed to its highest in more than seven months.