Base oils shipments from the Saudi Arabian ports of Yanbu and Jeddah stayed firm in November even as they edged down from the previous month.The steady flows made arbitrage opportunities more difficult for surplus shipments from Europe and US to markets like India and Mideast Gulf.The shipments also increasingly moved to markets that had been regular outlets for supplies from Europe, such as Egypt.The trend boosted supply options for buyers in markets like Africa and added to pressure on European suppliers.It also raised the prospect of cushioning the impact of the drop in shipments of Russian origin to Europe.Base oils shipments from Yanbu and Jeddah combined came to around 50,000t in November, shipping data showed..The volume was down from a six-month high of close to 60,000t in October but held above the 50,000t level for the third time in four months.The October cargoes had included a large volume of supplies that moved to east and South Africa.The November supplies included a shipment that moved to France.The shipments to each of these growing number of more distant destinations took place every few months. The cumulative effect was a regular flow of shipments to at least one of these markets every month.The diversification of outlets limited the shipments' reliance on any one market. They instead benefited from the strength of one market balancing out any temporary weakness in another.The prospect of a rise in Russian base oils supplies in the Mideast Gulf was likely to have limited impact on shipment flows from Saudi Arabia.Most of its shipments consisted of Group II base oils. A large portion of its Group I supplies consisted of bright stock.The rise in Russian base oils supplies in Mideast Gulf was instead set to leave the European market with tighter supplies of Group I base oils.Russia was previously a major source of Group I base oils for the European market.The trend was likely to boost European demand for Group I supplies from regional producers. Such a move would cut the producers’ availability of Group I base oils for more distant markets like Africa.Supplies from Saudi Arabia could cover more of those requirements instead..Europe’s Sept imports from Russia fall
Base oils shipments from the Saudi Arabian ports of Yanbu and Jeddah stayed firm in November even as they edged down from the previous month.The steady flows made arbitrage opportunities more difficult for surplus shipments from Europe and US to markets like India and Mideast Gulf.The shipments also increasingly moved to markets that had been regular outlets for supplies from Europe, such as Egypt.The trend boosted supply options for buyers in markets like Africa and added to pressure on European suppliers.It also raised the prospect of cushioning the impact of the drop in shipments of Russian origin to Europe.Base oils shipments from Yanbu and Jeddah combined came to around 50,000t in November, shipping data showed..The volume was down from a six-month high of close to 60,000t in October but held above the 50,000t level for the third time in four months.The October cargoes had included a large volume of supplies that moved to east and South Africa.The November supplies included a shipment that moved to France.The shipments to each of these growing number of more distant destinations took place every few months. The cumulative effect was a regular flow of shipments to at least one of these markets every month.The diversification of outlets limited the shipments' reliance on any one market. They instead benefited from the strength of one market balancing out any temporary weakness in another.The prospect of a rise in Russian base oils supplies in the Mideast Gulf was likely to have limited impact on shipment flows from Saudi Arabia.Most of its shipments consisted of Group II base oils. A large portion of its Group I supplies consisted of bright stock.The rise in Russian base oils supplies in Mideast Gulf was instead set to leave the European market with tighter supplies of Group I base oils.Russia was previously a major source of Group I base oils for the European market.The trend was likely to boost European demand for Group I supplies from regional producers. Such a move would cut the producers’ availability of Group I base oils for more distant markets like Africa.Supplies from Saudi Arabia could cover more of those requirements instead..Europe’s Sept imports from Russia fall
