South Korea’s Feb base oil exports fall

South Korea’s base oil exports fell in February for a third straight month amid a slowdown in shipments to the Americas and Mideast Gulf markets.

Total exports 346,900t fell in February from 365,690t the previous month, government data showed. The volume was the lowest since last August.

Total shipments of 712,590t in the first two months of the year were less than 0.5pc higher than year-earlier levels.

Various logistical issues cut South Korea’s base oil export volumes in early 2021 and exacerbated the regional supply tightness at that time.

The low base oil export volumes during the first two months of this year has coincided with a sustained rise in crude and diesel prices.

The higher feedstock costs have squeezed margins. The higher diesel prices have boosted the attraction of producing more of the motor fuel instead of base oils.

Global base oil prices had lagged the rise in crude and diesel values amid lingering surplus supplies at the start of the year in markets like the US.