Global imports of premium-grade base oils from the Middle East fell to a multi-year low in December amid a slump in shipments from Qatar.The drop in supplies coincided with and cushioned the impact of a seasonal slowdown in demand in overseas markets at the end of the year.Imports from the Middle East showed some signs of recovery at the start of this year.The US, Europe and Asia took delivery of less than 85,000 tonnes of base oils from UAE, Bahrain and Qatar combined in December, government and customs data showed.The three Middle East countries are key producers of Group III base oils..The volume fell from more than 250,000 tonnes in November and from typical levels of more than 200,000 tonnes/month to the lowest in at least five years.Imports of less than 45,000 tonnes in December from the UAE and Bahrain combined were the lowest since mid-2020.But the volume dipped from a multi-year high in November, leaving total shipments during the two months combined close to typical levels of more than 70,000 tonnes/month.Imports from Qatar also fell to less than 45,000 tonnes in December to the lowest since mid-2020.Unlike shipments from the UAE and Bahrain, imports from Qatar already dipped to a three-month low in November.The more extended slowdown included a pause in Hong Kong’s imports from Qatar in December for the first time since September 2023.There were also no shipments to Singapore in December for the first time since early 2023.The pause in shipments to markets in Asia coincided with a slump in US imports from Qatar to less than 50 tonnes in December.The volume was down from typical levels of close to 50,000 tonnes/month in the first eleven months of 2024 and from more than 40,000 tonnes in September 2023.The simultaneous drop in shipments to both the US and Asia in the same month was unusual.The fall in shipments coincided with an improvement in US domestic Group III 4cSt prices versus Group II light grades in the fourth quarter of the year.Asia Group III 4cSt prices were also steadier versus Group II prices during the fourth quarter..US’ December base oils imports fall.Europe Dec Grp III base oils supply falls.Singapore’s Jan base oils imports rise.Base Oil News stories and analyses also available on the ICIS platform
