Global base oils exports to the Middle East rose in May amid a jump in shipments from Asia to a six-month high.Suppliers in Asia typically account for close to 60% of total shipments to the Middle East.Buying interest in higher volumes from Asia could get further support from any prolonged pause or delay in shipments from Iran over the coming weeks.The lack of a large build-up of surplus supplies in the Middle East so far this year could provide additional buying interest in volumes from Asia, as well as from the US and Europe over the coming months.Asia’s total base oils exports to the UAE and Saudi Arabia combined came to more than 36,000 tonnes in May, government data showed..The volume rose from less than 20,000 tonnes in each of the previous two months to the highest since last November.Exports got a boost as a jump in shipments from South Korea added to a pick-up in supplies from Taiwan.The shipments almost matched total exports in April of close to 37,000 tonnes to the UAE and Saudi Arabia from Asia, as well as the US and Europe.The exports lifted total shipments to the Middle East to 154,000 tonnes in the first four months of the year.The volume was down 35% from more than 237,000 tonnes during the same period last year.The sustained slowdown in exports to the Middle East so far this year left blenders’ and distributors’ inventories more balanced than last year.It also raised the prospect of sustaining steadier buying interest over the coming months.Any slowdown in base oils flows from key sources in the Middle East could add to that buying interest.Any such slowdown, and dip in supplies of Group I heavy neutrals, could force buyers to procure more Group II heavy grades instead.The steep price-premium of Group II heavy grades over Group I base oils could complicate any such moves.A portion of the shipments that move to the Middle East are typically re-exported to markets like East Africa, where the price of the product can take priority over its quality. .S Korea’s May exports to India/Middle East rise.US’ April base oils/lube exports fall.India’s May heavy-grade base oils imports mixed.Global exports to Middle East stay lower in April
