Saudi Arabia’s Yanbu/Jeddah base oil exports rise

Base oils shipments from the Saudi Arabian ports of Yanbu and Jeddah rose in October to a six-month high, coinciding with moves by producers in Asia-Pacific and Europe to clear surplus supplies.

Base oils shipments from the two ports came to more than 60,000t in October, shipping data showed. The volume was up from less than 40,000t the previous month and the highest since April.

Total shipments of around 500,000t in the first ten months of the year were similar to year-earlier levels.

Supplies from Yanbu accounted for more than 70pc of the volume.

This year’s steady exports contrasted with a sustained slowdown in shipments from South Korea, volatile exports from US and tighter availability in Europe.

The steady flows contrasted with a change in the destination of some of the shipments, including more supplies to southern and eastern Africa.

The trend tapped the steady availability of supplies and the logistical proximity of those markets compared with other producers.

The rise in supplies this year to southern and eastern Africa from markets like Saudi Arabia and the Netherlands coincided with a drop in shipments to those markets from producers in Asia-Pacific.

The change in flows compounded the persistent supply surplus in the Asia-Pacific region.

Increasingly regular flows of shipments from Saudi Arabia to South Africa contrasted with a dearth of such supplies before this year. The exports in October included another such shipment.

More supplies also moved to Tanzania this year.

Singapore’s base oils imports from Saudi Arabia extended their rise this year, including another cargo moving to the city-state in October.

India remained a key market for supplies from Saudi Arabia.

Its imports of close to 300,000t from Saudi Arabia in the first ten months of the year were up from around 260,000t during the same period last year.

More of this year’s shipments to India included light and heavy-grade Group II base oils, with a lower share of very-light grades.