UK’s April base oil imports rise

The UK’s base oil imports rose in April to the second-highest level in at least three years amid a sustained rise in flows from Latvia and the US.

Base oil imports of 45,290t in April rose from 38,240t the previous month to the highest since last October, government data showed.

Shipments rose from year-earlier levels for a fourth straight month.

The sustained rise in shipments boosted total imports to 143,970t in the first four month of the year. The volume was up 38pc from 104,660t during the same period last year.

The surge in imports coincided with and helped to balance out a sharp fall in the UK’s domestic base oils output in the first few months of the year.

Besides the higher volume, the composition of the imports also differed markedly from year-earlier levels.

A rise in imports from the US continued for a fifth month. Imports of 22,880t from the US in the five months to April were up from a total of 7,050t in the two years to November 2021.

The shipments likely consisted mostly of Group II base oils. The pick-up in flows suggested these supplies were now moving directly to the UK rather than via Europe.

The EU has a base oils import quota for Group II base oils. There is a 3.7pc import tax for supplies exceeding that quota. The UK has no such quota.

The US accounts for the largest share of the EU's Group II base oil imports.

The UK’s imports from Latvia have also risen sharply this year.

Shipments of 17,980t from the Baltic country in the first four months of the year were up from less than 500t during the same period last year. The supplies likely consisted mostly of Group I base oils.

Latvia has no base oil plant. It has been a major transit point for rail shipments of base oils originating from Russia and Belarus before the supplies were transferred onto vessels.