Global base oils exports to the Middle East stayed higher than usual in March, adding to a swathe of shipments to the region in the first few months of the year.Total base oils exports of more than 68,000 tonnes in March to Saudi Arabia and the UAE combined rose from close to 72,000 tonnes the previous month, government data showed.The February volume was the highest in a year. The March volume was the second highest and up from typical exports of around 40,000 tonnes/month to the region in 2023.Some of the shipments to the region in the first few months of the year included surplus volumes from markets like the US.Some of the supplies reflected the impact of weak Chinese demand and the subsequent diversion of shipments from Asia to other outlets instead.Some of the supplies included a pick-up in shipments from Europe, despite tighter regional supply in that market early this year.Some of those trends could start to change over the coming months.The volume of surplus supplies in the US showed signs of dwindling in the second quarter of the year.The tighter supply curbed the availability and need to move shipments to outlets like the Middle East.Chinese demand for base oils supplies from the Asia-Pacific region showed signs of staying weak.The trend raised the prospect of refiners continuing to seek alternative outlets like the Middle East to place surplus volumes.The pick-up in supplies from Europe to the Middle East in February and March mirrored a similar trend in the first quarter of last year, with a difference.The supplies this year mostly reflected a rise in shipments from the Netherlands.More of last year’s supplies originated from Italy.The different supply source could limit the impact of the recent Group I plant closure in Italy and support steady flows from Europe.But the change in supply source could also compound the tighter availability of higher-quality Group I base oils in the Middle East market..Asia’s March base oils supply rises.US’ March base oils exports stay lower
Global base oils exports to the Middle East stayed higher than usual in March, adding to a swathe of shipments to the region in the first few months of the year.Total base oils exports of more than 68,000 tonnes in March to Saudi Arabia and the UAE combined rose from close to 72,000 tonnes the previous month, government data showed.The February volume was the highest in a year. The March volume was the second highest and up from typical exports of around 40,000 tonnes/month to the region in 2023.Some of the shipments to the region in the first few months of the year included surplus volumes from markets like the US.Some of the supplies reflected the impact of weak Chinese demand and the subsequent diversion of shipments from Asia to other outlets instead.Some of the supplies included a pick-up in shipments from Europe, despite tighter regional supply in that market early this year.Some of those trends could start to change over the coming months.The volume of surplus supplies in the US showed signs of dwindling in the second quarter of the year.The tighter supply curbed the availability and need to move shipments to outlets like the Middle East.Chinese demand for base oils supplies from the Asia-Pacific region showed signs of staying weak.The trend raised the prospect of refiners continuing to seek alternative outlets like the Middle East to place surplus volumes.The pick-up in supplies from Europe to the Middle East in February and March mirrored a similar trend in the first quarter of last year, with a difference.The supplies this year mostly reflected a rise in shipments from the Netherlands.More of last year’s supplies originated from Italy.The different supply source could limit the impact of the recent Group I plant closure in Italy and support steady flows from Europe.But the change in supply source could also compound the tighter availability of higher-quality Group I base oils in the Middle East market..Asia’s March base oils supply rises.US’ March base oils exports stay lower
