Global base oils exports to the Middle East fell in June to the lowest in almost two years, speeding up the consumption of existing stocks during the third quarter of the year.Total base oils exports to the UAE and Saudi Arabia combined fell to less than 15,000 tonnes in June, government data showed.The volume fell from more than 33,000 tonnes in May to the lowest since August 2022.The supplies originated from the US, Europe and Asia.Exports to the region showed signs of staying lower in July even as they rose from the previous month.The drop in exports continued to reverse a surge in shipments to the region in the first four months of the year that triggered a large build-up of surplus supplies.A large portion of those supplies were carried into the third quarter of the year, when regional demand faced a seasonal slowdown.The drop in shipments to the Middle East in June, and the lack of any significant additional supply-build, left buyers mostly reliant on those lingering stocks to cover their requirements.The consumption of more of those stocks raised the prospect of a pick-up in requirements later in the third quarter of the year.Prices for imported supplies of Group II base oils into the UAE suggested any such pick-up in demand has yet to materialize.The premium of CFR UAE Group II heavy -grade base oils over FOB NE Asia prices fell in August to its lowest in more than two years.The premium for light-grade base oils was higher but still well below levels during the first quarter of the year.The drop in base oils exports to the Middle East in June mostly reflected a slump in shipments from Asia to their lowest since the beginning of 2022.Exports from the US also fell, dipping to a five-month low.The outlier was Europe.Shipments of more than 8,500 tonnes from that market in June rose from less than 3,500 tonnes in May to a three-month high.Most of the supplies originated from Spain and the Netherlands..S Korea’s July exports to India/Mideast Gulf stay lower.Taiwan’s July base oils exports rise.US’ June base oils/lube exports rise
Global base oils exports to the Middle East fell in June to the lowest in almost two years, speeding up the consumption of existing stocks during the third quarter of the year.Total base oils exports to the UAE and Saudi Arabia combined fell to less than 15,000 tonnes in June, government data showed.The volume fell from more than 33,000 tonnes in May to the lowest since August 2022.The supplies originated from the US, Europe and Asia.Exports to the region showed signs of staying lower in July even as they rose from the previous month.The drop in exports continued to reverse a surge in shipments to the region in the first four months of the year that triggered a large build-up of surplus supplies.A large portion of those supplies were carried into the third quarter of the year, when regional demand faced a seasonal slowdown.The drop in shipments to the Middle East in June, and the lack of any significant additional supply-build, left buyers mostly reliant on those lingering stocks to cover their requirements.The consumption of more of those stocks raised the prospect of a pick-up in requirements later in the third quarter of the year.Prices for imported supplies of Group II base oils into the UAE suggested any such pick-up in demand has yet to materialize.The premium of CFR UAE Group II heavy -grade base oils over FOB NE Asia prices fell in August to its lowest in more than two years.The premium for light-grade base oils was higher but still well below levels during the first quarter of the year.The drop in base oils exports to the Middle East in June mostly reflected a slump in shipments from Asia to their lowest since the beginning of 2022.Exports from the US also fell, dipping to a five-month low.The outlier was Europe.Shipments of more than 8,500 tonnes from that market in June rose from less than 3,500 tonnes in May to a three-month high.Most of the supplies originated from Spain and the Netherlands..S Korea’s July exports to India/Mideast Gulf stay lower.Taiwan’s July base oils exports rise.US’ June base oils/lube exports rise
