The delivery of premium-grade base oils from the Middle East to key global outlets fell to a seven-month low in February amid low shipments from Qatar and a slump in flows from the UAE.The slowdown in shipments for a second month coincided with increasingly weak global Group III base oils prices relative to feedstock prices and compared with Group I and Group II prices.The price weakness pointed to surplus supply and weak demand.A seasonal dip in lube consumption in the US and Europe at the start of the year compounded the drop in demand.Signs of more Group III base oils supplies from domestic producers in the US compounded the surplus supply.The slowdown in shipments from Qatar mostly affected supplies bound for Europe.The drop in supplies from the UAE impacted supplies to Europe as well as the US.Those flows could change in the coming months after US Group III base oils prices fell to a discount to Europe Group III prices this month.The new dynamic incentivized refiners to move more supplies to Europe instead.The key outlets of US, Europe and Asia took delivery of around 184,000 tonnes in February from the UAE, Bahrain and Qatar combined, government data showed.The volume edged down from the previous month to the lowest since last July.Imports from Qatar improved to more than 125,000 tonnes in February, up from less than 110,000 tonnes the previous month.The volume was still the second lowest in seven months and down from average volumes of more than 165,000 tonnes/month in 2023.Supplies bound for Asia and the US were steady, while Europe’s imports from Qatar slumped for a second month.Imports from the UAE fell to less than 10,000 tonnes in February, from more than 60,000 tonnes the previous month.The February volume was the lowest in more than three years. The January volume had been the highest in almost two years. Europe’s imports from the UAE again stayed unusually low in February for a fourth month.Its imports likely improved in March following the arrival of a cargo from the UAE at the end of last month.Bahrain was the outlier.Imports of around 50,000 tonnes from the island-state in February were the highest in more than three years.The US was the destination for an unusually large volume of shipments.Supplies bound for Europe were also larger than usual..Europe Feb Grp III base oil supply stays low.US’ February base oils imports fall.China’s March base oils imports rise
