Global base oils exports to the Middle East fell to a three-month low in April amid a fall in shipments from Asia and Europe.Supplies from Asia showed signs of extending their slowdown into May.Tight availability of Group I base oils in Europe also raised the prospect of extending a slowdown in shipments from that region to the Middle East through the rest of the second quarter of the year.Exports from the US to the Middle East rose in April to the second-highest level in a year.An extension of those high flows through the rest of the second quarter of the year was unlikely because of tighter spot supply and higher prices in the US market.Total base oils exports to the UAE and Saudi Arabia combined fell to less than 46,000 tonnes in April, government data showed.The volume fell from more than 68,000 tonnes the previous month and from almost 72,000 tonnes in February.Exports to the region averaged around 40,000 tonnes/month in 2023.The supplies originated from the US, Europe and Asia.The rise in shipments to the Middle East in February and March helped to clear surplus volumes from those markets during the first quarter of the year.The surge in shipments also triggered a subsequent slowdown in demand as the region took time to absorb the swathe of imports.Tighter base oils supply in the US and Europe in the second quarter of the year cushioned the impact of the slowdown in demand from the Middle East.The slowdown in demand could have a larger impact on the Asia-Pacific market.Refiners in that region were seeking alternative outlets in response to slower demand in the key markets of China and India.Signs of a pick-up in shipments from Saudi Arabia to the UAE during the second quarter of the year could complicate further the opportunity to ship surplus supplies from Asia to the region..US’ April base oils exports rise.Taiwan’s May base oils exports rise.S Korea's May base oils exports to India rise
