The delivery of base oils from Qatar to key global outlets rose to a four-month high in January on the back of a surge in supplies bound for Asia.The rise in shipments contrasted with a slowdown in flows bound for Europe and the US.The key markets of US, Europe and Asia-Pacific took delivery of more than 180,000t of base oils from Qatar in January, government data showed.The volume rose from close to 160,000t the previous month to the highest since last September..The Asia-bound shipments accounted for around 65pc of the total volume. The share was up from more typical levels of closer to 50pc of the total.The shipments to Asia arrived just weeks after China ended its zero-Covid policy and ahead of an expected pick-up in economic activity in the country in response.Demand in southeast Asia also typically gets a seasonal boost during the first few months of the year.Low base oils prices in the Asia-Pacific region relative to the US and European markets also limited the room for a further drop in regional prices.The prospect of steady or firmer prices added to the attraction of moving more supplies to the region.The steadier prices contrasted with sustained pressure on base oils prices in Europe and the US during the first few weeks of this year.The fall in Qatar’s base oils supplies bound for Europe in January coincided with a seasonal drop in lube demand in the region. An economic slowdown compounded the fall in consumption and added to downward pressure on prices.Group III base oils were the exception. Europe’s Group III base oils fundamentals and prices held firm compared with Group I and Group II base oils since the start of the year.US base oils imports from Qatar held firm in January even as they fell from the previous month.The US attracted a swathe of Group III base oils imports last year in response to strong demand and high prices.The steady flows at the start of this year coincided with a slowdown in demand. US Group III base oils prices fell in response. .US’ Jan base oils imports fall
