Spain's Jan Cartagena exports rise

Exports of premium-grade base oils from the Spanish port of Cartagena rose to a four-month high in January, adding to a recovery in regional supply.

The pick-up in shipments followed a rebound in Group III base oils exports to Europe from the Mideast Gulf since December.

Supply in the region had tightened in October and November because of a drop in supplies from both Europe and the Mideast Gulf during those months.

Regional Group III base oils prices rose relative to crude oil and to other base oils grades at the start of the fourth quarter, reflecting the firm fundamentals.

The price premium then eased from late-November as supply began to improve.

The price premium to crude and diesel extended its fall last month to the lowest since the first quarter of last year.

Any pick-up in demand or drop in supply from current levels should counter that trend.

Exports of more than 54,000t from Cartagena in January rose from less than 43,000t the previous month and less than 36,000t in November, port data showed.

The volume was well above typical export levels of around 45,000 t/month over the past year. It should also help to cover for a pause in premium-grade shipments from Indonesia to Europe.

The 17pc rise in base oils shipments from Cartagena last year coincided with a reciprocal drop in premium-grade supplies from the Mideast Gulf to Europe.

Spain’s share of Europe’s supplies of premium-grade base oils rose in response.

The rising share increased its importance as a key supplier for the European market and magnified the impact of its fall in shipments during the fourth quarter of last year.

It would similarly magnify the impact of any planned plant maintenance work this year.

Its most recent round of plant maintenance work was in first-half 2021.