May base oil imports from Qatar dip

The delivery of base oils from Qatar to key outlets like US and Europe fell in May amid a pause in shipments to Germany.

Key markets like the US, Singapore and Hong Kong took delivery of some 138,500t of base oils in May, government and customs data showed.

The volume was down from a five-month high of more than 190,000t in April and lagged year-earlier levels for the seventh time in eight months.

The lower supplies cut total shipments from Qatar to 751,400t in the first five months of the year. The volume was down 11pc from 840,620t during the same period last year.

The slowdown mostly reflected a sharp fall in shipments to Europe and Hong Kong. Shipments to the US were similar to year-earlier levels.

Global Group III base oil prices have lagged the rise in Group I and Group II prices in recent months even with this year’s drop in supplies from Qatar.

The more muted price rise reflected the rise in exports from other producers of premium grade base oils.

Shipment volumes have risen because of a light round of plant maintenance work this year, especially compared with last year.

Demand from China has also been slower than usual.

The drop in May shipments mostly reflected a pause in deliveries to Germany that month.

The slowdown contrasted with a rise in flows to the US to a four-month high of more than 48,000t. Shipments to Hong Kong were at a similar level.