Global base oils exports to the Mideast Gulf rose in January as a rebound in shipments from Asia countered a drop in flows from the US and Europe.Exports from Asia to the region extended their rise in February.The trend highlighted the growing importance of supplies from Asia to cover the Mideast Gulf’s requirements for high-quality base oils at a time when shipments from other sources were more sporadic.Total base oils exports to the UAE and Saudi Arabia rose to more than 35,000t in January, up from close to 25,000t the previous month, government data showed.The supplies originated from the US, Europe and Asia.Exports of almost 30,000t from Asia in January rose from less than 10,000t the previous month amid a rebound in shipments from Taiwan and South Korea.The volume was even higher in February as a surge in shipments from South Korea outweighed a pause in flows from Taiwan.The January volume from Asia accounted for more than 80pc of total exports to the Mideast Gulf as supplies from the US almost halted.Shipments from Europe also fell.Exports of around 6,000t from the region in January fell from more than 8,500t in December and from typical levels of more than 11,000 t/month in 2023.Shipments from Europe were likely to remain lower than usual over the following months as vessel operators avoided the Red Sea region.The moves to bypass the Red Sea also complicated flows from Saudi Arabia to markets like the UAE and India.The largest impact was on supplies of higher-quality Group I base oils.Asia’s shipments to the Mideast Gulf consisted mostly of premium-grade base oils.Thailand was a key source of Group I base oils for the Mideast Gulf in the second and third quarters of last year.But shipments from the southeast Asian country paused since October..S Korea Feb base oil exports to UAE rise.Europe’s Jan base oils exports mixed
Global base oils exports to the Mideast Gulf rose in January as a rebound in shipments from Asia countered a drop in flows from the US and Europe.Exports from Asia to the region extended their rise in February.The trend highlighted the growing importance of supplies from Asia to cover the Mideast Gulf’s requirements for high-quality base oils at a time when shipments from other sources were more sporadic.Total base oils exports to the UAE and Saudi Arabia rose to more than 35,000t in January, up from close to 25,000t the previous month, government data showed.The supplies originated from the US, Europe and Asia.Exports of almost 30,000t from Asia in January rose from less than 10,000t the previous month amid a rebound in shipments from Taiwan and South Korea.The volume was even higher in February as a surge in shipments from South Korea outweighed a pause in flows from Taiwan.The January volume from Asia accounted for more than 80pc of total exports to the Mideast Gulf as supplies from the US almost halted.Shipments from Europe also fell.Exports of around 6,000t from the region in January fell from more than 8,500t in December and from typical levels of more than 11,000 t/month in 2023.Shipments from Europe were likely to remain lower than usual over the following months as vessel operators avoided the Red Sea region.The moves to bypass the Red Sea also complicated flows from Saudi Arabia to markets like the UAE and India.The largest impact was on supplies of higher-quality Group I base oils.Asia’s shipments to the Mideast Gulf consisted mostly of premium-grade base oils.Thailand was a key source of Group I base oils for the Mideast Gulf in the second and third quarters of last year.But shipments from the southeast Asian country paused since October..S Korea Feb base oil exports to UAE rise.Europe’s Jan base oils exports mixed