Global base oils exports to the Middle East rose to a one-year high in February as refiners in markets like the US sought to clear surplus volumes from their markets at the start of the year.Exports from Asia to the Middle East also rose, reflecting the region’s growing role as a key outlet for surplus supplies from sources like South Korea.The wave of exports contrasted with a slowdown in shipments to the Middle East in the fourth quarter of last year and early this year.Group II base oils prices in the Middle East firmed in the first quarter of the year relative to prices in the US and Asia, reflecting the region’s tighter supply fundamentals.Total base oils exports to the UAE and Saudi Arabia combined rose to more than 68,000 tonnes in February, up from less than 36,000 tonnes the previous month, government data showed. Exports of more than 18,000 tonnes from the US to the region in February were the highest in ten months.Exports of more than 35,000 tonnes from Asia were the highest in a year.The pick-up in exports from Asia showed signs of extending into March amid a sustained rise in shipments from South Korea.The wave of shipments to the Middle East in February consisted mostly of premium-grade base oils rather than Group I base oils.The trend reflected the tighter availability of Group I supplies in Asia and the dwindling availability of surplus Group I supplies for export from Europe.Base oils prices in the Middle East reflected the subsequent supply tightness, ICIS data showed.The premium of CFR UAE Group II N500 prices over Group I SN500 prices fell to around $100/tonne this month, down from more than $150/tonne as recently as mid-March.Base oils exports from Europe to the Middle East also rose to a one-year high of more than 14,000 tonnes in February.But shipments of around 20,000 tonnes in January and February combined were down from almost 48,000 tonnes during the same period last year.A large share of the shipments in the first two months of this year originated from the Netherlands, which is home to a Group II base oils producer.A large share of the shipments in the first two months of last year originated from Italy, which is home to several Group I base oils producers..S Korea’s March base oils exports to India/Mideast Gulf rise.Saudi Arabia’s Feb Yanbu/Jeddah exports fall
Global base oils exports to the Middle East rose to a one-year high in February as refiners in markets like the US sought to clear surplus volumes from their markets at the start of the year.Exports from Asia to the Middle East also rose, reflecting the region’s growing role as a key outlet for surplus supplies from sources like South Korea.The wave of exports contrasted with a slowdown in shipments to the Middle East in the fourth quarter of last year and early this year.Group II base oils prices in the Middle East firmed in the first quarter of the year relative to prices in the US and Asia, reflecting the region’s tighter supply fundamentals.Total base oils exports to the UAE and Saudi Arabia combined rose to more than 68,000 tonnes in February, up from less than 36,000 tonnes the previous month, government data showed. Exports of more than 18,000 tonnes from the US to the region in February were the highest in ten months.Exports of more than 35,000 tonnes from Asia were the highest in a year.The pick-up in exports from Asia showed signs of extending into March amid a sustained rise in shipments from South Korea.The wave of shipments to the Middle East in February consisted mostly of premium-grade base oils rather than Group I base oils.The trend reflected the tighter availability of Group I supplies in Asia and the dwindling availability of surplus Group I supplies for export from Europe.Base oils prices in the Middle East reflected the subsequent supply tightness, ICIS data showed.The premium of CFR UAE Group II N500 prices over Group I SN500 prices fell to around $100/tonne this month, down from more than $150/tonne as recently as mid-March.Base oils exports from Europe to the Middle East also rose to a one-year high of more than 14,000 tonnes in February.But shipments of around 20,000 tonnes in January and February combined were down from almost 48,000 tonnes during the same period last year.A large share of the shipments in the first two months of this year originated from the Netherlands, which is home to a Group II base oils producer.A large share of the shipments in the first two months of last year originated from Italy, which is home to several Group I base oils producers..S Korea’s March base oils exports to India/Mideast Gulf rise.Saudi Arabia’s Feb Yanbu/Jeddah exports fall
