Spain’s July Cartagena exports rise

Exports of premium-grade base oils from the Spanish port of Cartagena rose in July to a four-month high, extending a sustained rise in shipments for most of the past year.

Exports of more than 57,000t in June rose from less than 48,000t the previous month to the highest since March, according to Port Authority of Cartagena (PAC) data.

The rise in shipments lifted total exports to 321,090t in the first seven months of the year. The volume was up more than 50pc from 209,370t during the same period last year.

Base oil exports were lower last year partly because of plant maintenance work in the first half of the year.

The higher exports this year coincided with tighter-than-expected availability of Group I and Group II base oils in the European market.

The improvement in supply, and more competitive Group III base oil prices relative to Group I, added to the attraction for blenders to seek more of the premium-grade supplies instead.

The rise in exports in July coincided with a seasonal slowdown in base oils demand in Europe during the summer holiday period. Group I base oils supply has also improved and prices dipped.

The trend prompted a recovery in Group III base oil prices relative to Group I.

It also coincided with a rise in base oil exports to India. The country was the destination for several cargoes from Spain during the first half of the year. Two more shipments moved to India in July.

India is a key outlet for very-light grade base oils.