The delivery of premium-grade base oils from the Middle East to key global outlets fell in October amid a dip in shipments from Bahrain to a nine-month low.The key outlets of US, Europe and Asia took delivery of around 215,000 tonnes of base oils in October from Qatar, UAE and Bahrain combined, government data showed.The volume fell from more than 245,000 tonnes the previous month as shipments from Bahrain dipped to less than 15,000 tonnes.Shipments from the island-state were typically more than 30,000 tonnes/month over the past year.Asia was the destination for the largest share of shipments from the Middle East in October amid a pick-up in supplies from Qatar.The US remained the destination for the largest share of supplies from Bahrain and UAE for the fourth time in five months.The trend reflected a sustained surge in shipments from Bahrain and UAE to the US this year, combined with a dip in their shipments to Asia and especially to Europe.More supplies moved to the US despite firmer Group III prices in Europe and Asia than in the US throughout much of the year.The slowdown in flows to Asia mostly reflected a fall in shipments to China, whose domestic Group III base oils output more than doubled in the first eleven months of the year from the previous year.Rising domestic Group III production cut the country’s requirements for supplies from overseas markets.The slump in flows from Bahrain and UAE to Europe coincided with steadier shipment volumes from Asia to Europe.South Korea’s base oils exports to the Netherlands and Belgium combined rose by almost 80% in the first eleven months of the year.The pick-up in flows from South Korea to Europe in turn coincided with a drop in its shipments to the US and a surge in flows from the Middle East to the US.The dynamic highlighted the repercussions of a change in supplies in certain markets and the knock-on effects on other markets.It pointed to demand growth that was insufficient to absorb a pick-up in domestic supplies in markets like China and the US.And it pointed to stricter requirements in Europe than in other regions for Group III base oils supplies with the full set of OEM approvals..Europe Oct Grp III supply stays low.US’ October base oils imports fall.Global exports to Middle East rise in Oct
