Spore’s April base oil exports hold firm

Singapore’s base oil exports held firm in April for a second month, adding to the region’s healthy availability of supply.

Base oil exports of 171,170t in April fell from 185,110t the previous month, government data showed. The volume was still the third highest in 20 months.

The second highest was in March.

The highest volume had been last September. But export volumes had been much lower in the month before and after September.

Signs of a more sustained pick-up in base oil exports from Singapore would add to availability in a region that has so far avoided the kind of supply tightness that the European market especially is facing.

Exports have risen even amid relatively weak base oil values relative to crude and diesel prices in recent months and signs of increasingly tight supply of middle distillates.

At the same time, unusually weak middle distillate prices and demand had been factors that had triggered a slump in base oil supply in Singapore throughout 2020 and much of 2021 as refiners cut run rates.

The reversal of those dynamics incentivizes refiners to boost their run rates.

Still, export volumes remain historically low.

Singapore base oil exports of 679,480t in the first four months of the year were up 5pc from 644,220t during the same period last year.

But they remained down 22pc from 872,100t during the same period in 2020.