Japan’s April base oil exports rise

Japan’s base oil exports rose in April to their highest in more than a year, helping to cover firm demand in southeast Asia.

Base oil exports of 97,460 kilolitres (86,330t) in April rose from 83,750kl the previous month and by 28pc from year-earlier levels, government data showed. The volume was the highest since March 2021.

Exports of 348,000kl in the first four months of the year were down 9pc from 380,390kl during the same period last year.

The lower volume partly reflected a slump in exports during the fourth quarter of last year that extended into the beginning of this year. Japan’s base oil production was also unusually low during that period.

The rise in Japan’s base oil exports in recent months has added larger-than-usual volumes to regular outlets like Singapore.

There has also been a surge in shipments to Thailand. Exports of almost 24,000kl to that market in the first four months of the year outpaced year-earlier levels to climb to a record high.

The rise in shipments to southeast Asia coincided with easing Covid-19-related restrictions that added to a strong pick-up in lube demand.

The rise in shipments contrasted with a slowdown in Japan’s base oil exports to China. The recent imposition of lockdowns in key cities in the country slashed domestic demand.

Exports of less than 40,000kl to China in the first four months of the year were the second lowest in the past decade. The lowest was in 2020, when China implemented its first round of Covid-19 lockdowns.