Global base oils exports to the Middle East likely fell in June amid a dip in shipments from Asia.Supplies from Asia-Pacific typically account for more than half of total shipments to the region.Any such drop in shipments would coincide with a slowdown in Group I base exports from Iran in June.The country is the key source of competitively-priced Group I base oils in the region.Its offers of supplies for export halted during the Israel-Iran conflict last month, with the pause extending into early July. The simultaneous drop in supplies from within and outside the region could leave blenders and distributors with lower stocks at the start of the third quarter of the year.A seasonal slowdown in demand during the third quarter could cushion the impact of lower stocks.But buyers could seek additional volumes during a round of stock-replenishment for supplies for delivery later in the third quarter.Base oils exports from Asia to the UAE and Saudi Arabia combined fell to around 23,000 tonnes in June, government data showed..The volume fell from more than 36,000 tonnes in May as a dip in shipments from South Korea more than countered a pick-up in flows from Taiwan.The higher volume in May, combined with shipments from the US and Europe, helped to boost total exports to the Middle East to around 53,000 tonnes that month.The May supplies were higher than usual and rose from year-earlier levels for the first time in five months.The drop in shipments in the first four months of the year partly reflected a surge in exports to the Middle East in early-2024.The lack of any such build-up of surplus supplies this year raised the prospect of sustaining steadier flows over the coming months.The lack of any such surplus could also compound any short-term tightness and add to a pick-up in demand for replenishment volumes in a few weeks’ time..S Korea’s June base oils exports rise.Taiwan’s June base oils exports hold firm.US’ May base oils exports rise.Global base oils exports to Middle East rise in May
