Taiwan’s April base oil exports fall

Taiwan’s base oil exports fell in April to a six-month low, reflecting the impact of unexpected production issues.

Exports of 27,930t in April fell by 30pc from 40,130t the previous month, government data showed.

The volume was the lowest since last October, when Taiwan’s sole base oil unit had just resumed operations following a prolonged shutdown.

Exports fell this time because of unexpected production issues at the Group II plant. The slowdown in shipments affected heavy and especially light-grade supplies.

The drop in supplies came at a time when regional base oil producers have faced a growing incentive to cut back their output of light-grade base oils.

Regional base oil prices for the product have risen in recent weeks. But they have remained unusually weak relative to surging crude and diesel prices.

Their relative weakness has slashed producers’ margins and incentived them to produce more motor fuels instead.

The drop in shipments cut Taiwan’s base oil exports to 152,160t in the first four months of the year. The volume was down 13pc from 175,720t during the same period a year earlier.