Italy's Feb base oils exports to UAE stay high

Italy’s base oils exports to the UAE held unusually high in February for a second month, helping to clear a swathe of surplus supplies from Europe.

Base oils exports of 10,500t in February were steady from the previous month, government data showed.

The volumes were up from average levels of around 2,300 t/month in 2022 and the highest since mid-2021.

Exports rose following a surge in Italy’s base oils output early this year, while regional demand fell.

The supply-surplus put pressure on regional base oils prices, making feasible the arbitrage to outlets like the Mideast Gulf.

The shipments added to a wave of supplies to that region from southeast and northeast Asia.