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Base oils shipments from Yanbu and Jeddah rose to an eight-month high in April, extending March’s recovery
A slump in UAE-bound flows freed up volumes for Europe, Asia and South Africa
Shipments to Southeast Asia rose to a multi-month high, with strong flows extending into May
Saudi exports helped offset supply gaps in Europe and Asia amid maintenance outages and feedstock constraints elsewhere
Base oils shipments from Saudi Arabia’s Red Sea ports of Yanbu and Jeddah rose to an eight-month high in April, as stronger flows to Asia, Europe and India helped offset tighter supply in those regions.
Total shipments rose to more than 70,000 tonnes in April, climbing from over 50,000 tonnes in March to the highest since August 2025, provisional shipping data showed.
The increase extended a recovery that began in March, when exports had already reached a seven-month peak following the restart of a key base oils unit after scheduled maintenance at the end of 2025.
The rise in Saudi volumes coincided with uneven global supply. A pause in shipments from other Middle East refiners and production constraints from maintenance outages and feedstock disruptions tightened availability across multiple markets.
Key Highlights
· Shipments from Jeddah jumped to a seven-month high, driving the surge in total exports, while Yanbu flows stayed elevated.
· Shipments bound for Southeast Asia rose to a multi-month high, with the higher flows extending into May.
· Flows to Europe stayed higher than usual in April, with the shipments bound for the Mediterranean region rather than Northwest Europe, and that trend extending into May.
· Exports to India extended their recovery to a one-year high, adding to signs of steady flows to that market.
· A slump in flows to the UAE continued, with logistical challenges freeing up more cargoes for alternative outlets.
Market Repercussions
The rise in total shipments and the redirection of more of those cargoes to Europe and Asia pointed to the benefit for refiners able to secure stable feedstock and supply cargoes in an unexpectedly tight global market.
The prospect of an extension of the supply disruptions over the coming months also increased the importance of the Saudi exports for markets such as Europe and magnified the impact of any slowdown in these shipments.
The planned shutdown of Luberef’s Yanbu plant in August could trigger such a slowdown, though the timing could be adjusted in light of market conditions.
