Global base oils exports to the Middle East rose in July as shipments from Asia climbed to an eight-month high.Asia’s total exports to the UAE and Saudi Arabia combined rose to more than 42,000 tonnes in July, government data showed.The volume rose from less than 23,000 tonnes the previous month to the highest since last November..The rise in shipments lifted Asia’s total exports to the Middle East to close to 183,000 tonnes in the first seven months of the year.The volume remained down 9% from year-earlier levels, reflecting Asia’s tighter supply-demand fundamentals during the first half of the year.The volume still narrowed from a 45% shortfall in the first four months of the year, pointing to improving availability of supplies at the start of the third quarter especially..The rise in shipments helped to clear surplus volumes from Asia at a time of year when regional demand faced a seasonal slowdown.The pick-up in shipments in turn boosted supplies in the Middle East at a time of year when activity in that market also faced a seasonal slowdown.The rise in supplies and stocks in the Middle East could cushion the impact of a slowdown in Group I shipments from Iran to the region since June.Tighter supply triggered a sharp rise in the region’s Group I prices relative to Group II prices since late-June. The firmer prices boosted the attraction for blenders to use more premium-grade supplies instead.Any such moves to use more premium-grade supplies would benefit refiners in Asia especially. Buyers’ higher stocks in the Middle East could also trigger more muted buying interest in supplies from other sources like Europe and the US.Exports from those two markets to the Middle East already slowed in June to a ten-month-low of less than 12,000 tonnes.The slowdown cut global base oils exports to the Middle East to close to 35,000 tonnes in June.Just Asia’s base oils exports to the region in July already exceeded that total volume in June..S Korea’s July base oils exports to Middle East rise .US June base oils/lube exports fall.Global exports to Middle East fall in June.Base Oil News stories and analysis also available on ICIS platform
