Asia’s imports of premium-grade base oils from the Middle East fell in February to the second-lowest level in the past two years amid a sustained slowdown in shipments from Qatar.The fall in shipments raised the prospect of more supplies targeting the other key markets of US and Europe instead.Any such trend could add to pressure on already-weak Group III base oils prices in those markets.Asia took delivery in February of less than 35,000 tonnes of base oils from Qatar, UAE and Bahrain combined, government and customs data showed.The volume fell by more than 50% from year-earlier levels and cut total imports in the three months to February to less than 145,000 tonnes..The three-month volume was the lowest since early-2023 and mostly reflected a slump in shipments from Qatar.The fall in supplies coincided with but still exceeded the size of a sustained rise in Group III base oils output in China.It also coincided with a fall in China’s domestic Group III base oils price relative to prices in US and Europe since mid-February.Any extension of the drop in shipments to Asia would put more pressure on other key markets to absorb more of the supplies.US’ base oils imports from the three Middle East countries already rose by 20% in 2024 from the previous year, accounting for more than 40% of their total shipments.The share was up from less than 35% of the total in 2023.The trend extended into this year, with the US accounting for 42% of total supplies from the Middle East in the three months to January.Europe’s share of imports from the three Middle East countries rose to 29% of the total in the three months to January, up from a 24% share in 2024.Europe’s Group III 4cSt (low) base oils price slipped to and held at a discount to regional Group II prices since early February.The unusual discount reflected the ongoing weak Group III fundamentals in the European market.Any diversion of additional Group III base oils shipments to the region from the Middle East could compound that weakness..US’ January base oils imports rise.Europe’s January Group III supply rises
Asia’s imports of premium-grade base oils from the Middle East fell in February to the second-lowest level in the past two years amid a sustained slowdown in shipments from Qatar.The fall in shipments raised the prospect of more supplies targeting the other key markets of US and Europe instead.Any such trend could add to pressure on already-weak Group III base oils prices in those markets.Asia took delivery in February of less than 35,000 tonnes of base oils from Qatar, UAE and Bahrain combined, government and customs data showed.The volume fell by more than 50% from year-earlier levels and cut total imports in the three months to February to less than 145,000 tonnes..The three-month volume was the lowest since early-2023 and mostly reflected a slump in shipments from Qatar.The fall in supplies coincided with but still exceeded the size of a sustained rise in Group III base oils output in China.It also coincided with a fall in China’s domestic Group III base oils price relative to prices in US and Europe since mid-February.Any extension of the drop in shipments to Asia would put more pressure on other key markets to absorb more of the supplies.US’ base oils imports from the three Middle East countries already rose by 20% in 2024 from the previous year, accounting for more than 40% of their total shipments.The share was up from less than 35% of the total in 2023.The trend extended into this year, with the US accounting for 42% of total supplies from the Middle East in the three months to January.Europe’s share of imports from the three Middle East countries rose to 29% of the total in the three months to January, up from a 24% share in 2024.Europe’s Group III 4cSt (low) base oils price slipped to and held at a discount to regional Group II prices since early February.The unusual discount reflected the ongoing weak Group III fundamentals in the European market.Any diversion of additional Group III base oils shipments to the region from the Middle East could compound that weakness..US’ January base oils imports rise.Europe’s January Group III supply rises
