Israel’s July base oils imports fall

Israel’s base oils imports fell in July to their second-lowest level in the last four years amid a sustained dip in shipments from key sources in the Mediterranean region.

Imports of 4,870 kilolitres (4,310t) in July fell from an already low 6,600kl the previous month and by 76pc from year-earlier levels, government data showed.

The volume was the second lowest since June 2018. The lowest since then was 4,720kl in February.

The slump in shipments cut Israel’s base oils imports to 62,480kl in the first seven months of the year. The volume was down more than 70pc from 218,610kl during the same period last year.

Israel’s base oils imports slumped despite firm economic growth this year. Inflation and interest rates were also lower than in other regions like Europe.

The fall in shipments followed the imposition of taxes on base oils and lubricants imports since late last year.

Israel’s car sales have also fallen throughout most of this year.

Regional base oils supply was also unusually tight and prices unusually high as a drop in shipments from Russia compounded the impact of plant maintenance work in Europe.

Availability improved and prices eased in the third quarter of the year.

Expectations of such a trend incentivized buyers to hold back.

Israel’s base oils imports from Italy rose in July to a six-month high of 650kl.

Imports from the Mediterranean country had totaled less than 1,000kl in the first half of the year, down from more than 7,500kl during the same period last year.

The pick-up in imports coincided with the restart of a major Group I base oils plant in Italy at the start of the third quarter of the year. The plant had been offline since last November because of extended maintenance work.