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Saudi base oils shipments from Yanbu and Jeddah rose to a seven-month high in March, with flows redirected toward India and Europe
West-of-Suez flows to Egypt and Europe rose, while flows to Asia remained paused
The trend extended into April, with elevated volumes and larger cargoes continuing toward Europe
Base oils shipments from Saudi Arabia’s Red Sea ports of Yanbu and Jeddah rebounded to a seven-month high in March, boosting flows to markets facing tightening availability as global supply disruptions intensified.
Total shipments rebounded to more than 50,000 tonnes in March, up from less than 30,000 tonnes in February to the highest since the third quarter of 2025, provisional shipping data showed.
The UAE and India are typically the key outlets for most of Saudi Arabia’s base oils shipments.
Saudi Arabia instead redirected flows toward alternative markets as UAE port access tightened, mirroring a pattern seen across other regional suppliers.
Key Highlights
· Exports to India rebounded to the highest since early last year, following a sustained slowdown since mid-2025.
· Shipments to destinations outside India and the UAE rose to a seven-month high.
· The increase reflected stronger West-of-Suez flows to markets such as Egypt and Europe, with flows to Asia remaining paused.
· China and Singapore’s base oils imports from Saudi Arabia remained paused for a third month, with the slowdown in flows to Singapore extending through April.
Market Repercussions
The surge in shipments to Europe provided additional supply at a time when refinery maintenance and a focus on maximising middle distillates output squeezed base oils availability across the region.
The additional flows to India also helped partially offset a recent slowdown in global shipments to that market.
The pattern showed signs of extending into April, with shipment volumes remaining elevated and larger-than-usual flows moving to Europe, along with another large shipment set to reach India by month-end.
The shift pointed to Saudi Arabia's ability to take advantage of regional supply tightness and firm pricing in Europe.
It also pointed to the logistical advantage of Red Sea-based production located close to upstream feedstock sources, contrasting with overseas refiners more exposed to feedstock supply disruptions.
