The delivery of premium-grade base oils from the Middle East to key global outlets rose to a five-month high in November on the back of a surge in shipments from Bahrain and the UAE.The rise in shipments triggered a sharp jump in US and Europe base oils imports from the region.Asia’s imports by contrast fell to a four-month low.The disconnect left the US and Europe markets taking delivery of a wave of additional premium-grade supplies at a time of year when demand faced a seasonal slowdown.Demand in the Asia market also faced a seasonal slowdown. But it faced a more manageable supply surplus at year-end even before the slide in imports from the Middle East.The US, Europe and Asia took delivery of more than 250,000 tonnes of premium-grade base oils from Qatar, UAE and Bahrain combined in November, government data showed.The volume rose from around 215,000 tonnes the previous month and for the fifth time in six months from year-earlier levels.The volume rose even with a drop in shipments from a Qatar to a three-month low of less than 145,000 tonnes.The slowdown reflected a slump in Asia’s imports from Qatar to a fourteen-month low. The drop in supplies more than countered a rise in shipments to Europe and a surge in flows to the US.Imports from the Middle East instead rose on the back of a simultaneous jump in shipments from Bahrain and the UAE.Shipments of more than 50,000 tonnes from the UAE in November were the highest in ten months and followed firm shipment volumes during the preceding months.Supplies from Bahrain rebounded to a multi-year high of more than 55,000 tonnes in November.The rise in shipments could have reflected the impact of cargo-loading times, following a slump in flows the previous month.Like with Qatar, the US and Europe again saw a surge in imports from the two countries to more than 88,000 tonnes in November, from less than 50,000 tonnes the previous month.Asia took delivery of around 20,000 tonnes of the shipments, with most of the supplies moving to India.The pick-up in total shipments to the US especially in November, and slowdown in flows to Asia, extended a similar trend throughout the year.Shipments to the US rose despite slack demand and increasingly weak Group III base oils prices in that market.Shipments to Asia fell despite steadier demand and firmer Group III prices relative to other regions.The disconnect was likely linked to China, whose Group III base oils production surged in 2024..US’ November base oils imports rise.Europe’s Nov Group III supply rises.China’s December base oils output rises.Base Oil News stories and analyses also available on the ICIS platform
