The delivery of premium-grade base oils from the Mideast Gulf to key global outlets fell to a six-month low in January mostly because of a slump in shipments from Qatar.The slowdown triggered a fall in Europe’s premium-grade base oils imports from the region to the lowest in more than three years.US imports from the region by contrast rose to a four-month high even as total shipments fell.The strength of US base oils imports relative to Europe’s imports mirrored Group III base oils prices in the two respective markets.US Group III base oils prices maintained a steep premium to Europe prices since the third quarter of last year, ICIS data showed.The US price premium widened further during the first quarter of this year.The widening premium added to the incentive for refiners in the Mideast Gulf to target the US with more supplies.The key outlets of US, Europe and Asia took delivery in January of around 175,000t of supplies from the UAE, Bahrain and Qatar combined.The volume fell from more than 260,000t the previous month to the lowest since last July.The slowdown mostly reflected a slump in global imports from Qatar to little more than 100,000t in January, from close to 220,000t the previous month.Imports from Bahrain also stayed lower than usual, while shipments from the UAE rose to a four-month high.Europe faced the steepest drop in shipments, with imports from Qatar almost halting in January and supplies from UAE staying unusually low.The flow of shipments to Asia also fell, dipping in January to a nine-month low.US imports of more than 80,000t in January rebounded from less than 45,000t the previous month to the highest since September.Imports surged amid steady flows from Qatar. The US was also the destination for almost all the UAE’s base oils shipments in January.Still-high US Group III prices relative to other markets raised the prospect of an extension of the trend over the following months. .Europe’s Jan Grp III base oils supply falls.US’ January base oils imports fall
The delivery of premium-grade base oils from the Mideast Gulf to key global outlets fell to a six-month low in January mostly because of a slump in shipments from Qatar.The slowdown triggered a fall in Europe’s premium-grade base oils imports from the region to the lowest in more than three years.US imports from the region by contrast rose to a four-month high even as total shipments fell.The strength of US base oils imports relative to Europe’s imports mirrored Group III base oils prices in the two respective markets.US Group III base oils prices maintained a steep premium to Europe prices since the third quarter of last year, ICIS data showed.The US price premium widened further during the first quarter of this year.The widening premium added to the incentive for refiners in the Mideast Gulf to target the US with more supplies.The key outlets of US, Europe and Asia took delivery in January of around 175,000t of supplies from the UAE, Bahrain and Qatar combined.The volume fell from more than 260,000t the previous month to the lowest since last July.The slowdown mostly reflected a slump in global imports from Qatar to little more than 100,000t in January, from close to 220,000t the previous month.Imports from Bahrain also stayed lower than usual, while shipments from the UAE rose to a four-month high.Europe faced the steepest drop in shipments, with imports from Qatar almost halting in January and supplies from UAE staying unusually low.The flow of shipments to Asia also fell, dipping in January to a nine-month low.US imports of more than 80,000t in January rebounded from less than 45,000t the previous month to the highest since September.Imports surged amid steady flows from Qatar. The US was also the destination for almost all the UAE’s base oils shipments in January.Still-high US Group III prices relative to other markets raised the prospect of an extension of the trend over the following months. .Europe’s Jan Grp III base oils supply falls.US’ January base oils imports fall
