South Korea’s base oils exports to the Middle East rose to a sixteen-month high in July, contrasting with a dip in shipments to India to a ten-month low.Total base oils exports to the Middle East came to close to 38,000 tonnes in July, government data showed..The volume rose for a third-month from year-earlier levels to the highest since March 2024.More than 25,000 tonnes of the shipments moved to the UAE, which is the key destination for spot shipments from overseas markets. A rise in Asia’s base oils exports to the Middle East often coincides with moves to clear a pick-up in the region's spot supplies.The rise in South Korea's exports to the Middle East in July pointed to such a dynamic. It also pointed to more muted demand from term buyers in other markets at a time of year when consumption in Asia typically faces a seasonal slowdown..A surge in India’s base oils imports in July likely left blenders’ stocks at more comfortable levels, curbing their urgency to lock in additional volumes from suppliers like South Korea.A rise in Asia’s spot supplies and the need to clear those volumes in more distant markets typically puts pressure on a large adjustment in base oils prices to facilitate those moves. The rise in shipments to the Middle East coincided with lower FOB Asia Group II heavy-grade base oils prices during the third quarter of the year.But the fall in prices was relatively small, while prices for light-grade base oils rose.The relatively firm prices suggested that demand was sufficiently strong in markets like the Middle East to absorb the pick-up in supplies from sources like South Korea.Strong demand curbed pressure on Asia’s refiners to make larger price-adjustments or to target more distant markets with surplus volumes.Strong demand in the Middle East, at a time when consumption is typically lower, could reflect tighter availability of Group I heavy neutrals and increasingly competitive prices for Group II supplies as an alternative..S Korea’s July base oils exports stay low.Taiwan’s July base oils exports rise.Base Oil News stories and analysis also available on ICIS platform
