Exports surge ahead of shutdown from mid-November
Pause in exports then extend at least through to mid-December
Surge in S Korea exports to UAE help cover shortfall during shutdown
Saudi Arabia’s base oils exports from the ports of Yanbu and Jeddah edged higher in November amid a surge in flows ahead of plant-maintenance that began mid-month.
Combined shipments from the two Red Sea ports rose to more than 50,000 tonnes in November, provisional shipping data showed.
Exports rose from less than 45,000 tonnes in October, bringing volumes closer to typical monthly shipment levels this year.
Exports included steady flows to key outlets like UAE, India and Europe, helping cushion any immediate impact of the maintenance-work.
Cargo loadings slowed sharply from around mid-November, coinciding with the start of the maintenance.
The pause in flows extended at least through to mid-December, with the shutdown expected to last until end-December.
The subsequent drop in shipments had the largest impact on outlets in the Middle East.
It also provided a window for refiners in South Korea especially to cover the shortfall and simultaneously clear surplus volumes from Asia, where demand faced a seasonal slowdown.
Exports from South Korea to the UAE surged in October and November, highlighting such moves.
The pause in shipments from Saudi Arabia to Europe was also timely, avoiding the additional of further volumes to a market already facing a seasonal demand slowdown and surplus supply at year-end.
Saudi Arabia’s base oils exports are likely to rise strongly next year following the completion of the maintenance work and start-up of expanded domestic production capacity.
