Israel’s June base oils imports fall

Israel’s base oils imports fell in June to their second lowest in more than three years amid tight supplies and high prices in overseas markets.

Imports of 6,600 kilolitres (5,850t) in June fell by almost half from 12,910kl the previous month, government data showed.

The volume was the lowest since February and second lowest since late 2018.

The drop in supplies cut total base oils imports to 57,610kl in the first half of the year. The volume was down more than 70pc from 198,350kl during the same period last year.

Imports slumped despite firm economic growth and a sustained rebound in industrial production throughout most of the past year. Israel's purchasing managers’ index for June rose to its highest in seven months.

The drop in imports instead partly reflected the imposition of taxes on base oils and lubricants imports since late last year.

High prices and tight availability of base oils supplies in Europe in the second quarter of the year added to a reluctance to buy.

Israel’s base oils imports from Spain, Italy and Greece combined fell to less than 15pc of its total imports in June.

The share was down from some 30pc of imports in the first four months of the year.

Imports of less than 1,000kl from Italy in the first half of the year were down from more than 7,500kl during the same period last year.

The slowdown coincided with extended plant maintenance work in Italy.

Buyers turned instead to other sources such as India, which has been a more regular exporter of spot shipments this year.

Imports of more than 5,200kl from India in the first half of the year rose from less than 3,150kl during the same period last year.