Global base oils exports to the Middle East rose in February amid a recovery in flows from Asia.Base oils exports from Asia to the UAE and Saudi Arabia combined rose to close to 35,000 tonnes in February, government data showed.The volume was up from less than 10,000 tonnes in each of the previous two months.The low volumes compounded a dip in global exports to the Middle East to less than 30,000 tonnes/month in December and in January..The January volume of around 26,000 tonnes from Asia, US and Europe combined was the lowest in seven months.The drop in exports reflected the more limited availability of surplus cargoes at a time of year when suppliers in markets like Europe and US typically faced a build-up of such volumes.The Middle East was an increasingly attractive outlet to place those surplus supplies and provided buyers with the opportunity to secure additional volumes at competitive price levels.The drop in exports at end-2024 and early this year curbed that opportunity.The slowdown contrasted with last year, when global exports to the Middle East rose to close to 190,000 tonnes in the first quarter of the year.The volume was more than double the total export volume in the fourth quarter of 2023.The pick-up in shipments from Asia in February provided a welcome respite following the slowdown at the start of the year.But a more sustained pick-up in flows could take longer to materialize.Plant maintenance in South Korea in March could continue to curb export volumes from Asia.In Europe, lower-than-usual availability of surplus Group I shipments at the start of the year showed signs of tightening further over the coming months.There were also so far scant signs of a more sustained pick-up in arbitrage shipments from the US to markets like India and Middle East.A slowdown in arbitrage shipments raised the prospect of buyers in the Middle East holding off moves to build larger stocks and instead securing sufficient volumes to cover requirements..Saudi Arabia Feb Yanbu/Jeddah exports fall.S Korea’s Feb exports to India/UAE rise.US’ Jan base oils exports hold steady
