Global base oils exports to Egypt stayed lower than usual in December even as they recovered to a three-month high.Total base oils exports of around 12,000t to Egypt in December rose from less than 5,000t the previous month.Almost all the supplies originated from Europe, mostly from Spain and Italy.Even with the rise in shipments, total exports of 166,000t to Egypt in 2023 fell from almost 220,000t in 2022 to the lowest in more than five years.The fall in in shipments coincided with slowing economic growth in the country in the face of high inflation, currency weakness and rising interest rates.Egypt’s central bank increased interest rates in early February to a multi-year high.Lower base oils demand coincided with more limited availability of supplies from Europe even as the region continued to account for most of Egypt’s overseas shipments.Europe’s tighter base oils supply boosted the attraction for suppliers in other regions to move more shipments to African markets like Egypt and Nigeria.Europe’s Group I base oils supply is likely to tighten further this year following the expected closure of another base oils plant in the region in the coming months. .Global exports to Nigeria rise in December.Europe Nov base oil supply lags demand
