India’s imports of very-light grade base oils rose in October to a six-month high amid a pick-up in shipments from the Mideast Gulf.Imports were still low, falling for a seventh time from year-earlier levels.Imports of more than 155,000t in October rose from less than 125,000t the previous month, provisional customs data showed. The September volume had been the lowest in at least 20 months..The sustained slowdown in shipments coincided with weak domestic retail diesel prices in India compared with crude oil and compared with regional base oils prices.Domestic diesel prices rose later and less than the rise in crude oil prices in the first half of the year. They then stayed unchanged since May.Higher regional base oils prices also lagged the rise in crude oil prices in the first half of the year. But they rose more than India’s retail diesel prices.The trend cut sharply the premium of diesel to crude and to base oils prices.The diesel premium to base oils prices began to widen from July, reflecting the fall in prices during the third quarter. But it remained much lower than in 2021 and early this year.The surge in India’s imports of very light grades in 2021 had coincided with diesel prices rising to an unusually steep premium to base oils prices.The rise in imports in October mostly reflected a rebound in shipments from Qatar to around 20,000t. The volume was the second highest this year, after imports had almost completely halted during the previous two months.The rise in imports followed a surge in flows from the Mideast Gulf country to other key outlets in September.There was no such rebound in very-light grade supplies from South Korea.Imports from that market held in a low 55,000-65,000 t/month level since June.High diesel prices and strong demand for middle distillates incentivized South Korean refiners to pour very-light grade base oils back into the diesel pool..S Korea's Sept base oils output falls.Imports from the country had averaged close to 120,000 t/month in 2021..India’s Sept v light-grade imports fall
India’s imports of very-light grade base oils rose in October to a six-month high amid a pick-up in shipments from the Mideast Gulf.Imports were still low, falling for a seventh time from year-earlier levels.Imports of more than 155,000t in October rose from less than 125,000t the previous month, provisional customs data showed. The September volume had been the lowest in at least 20 months..The sustained slowdown in shipments coincided with weak domestic retail diesel prices in India compared with crude oil and compared with regional base oils prices.Domestic diesel prices rose later and less than the rise in crude oil prices in the first half of the year. They then stayed unchanged since May.Higher regional base oils prices also lagged the rise in crude oil prices in the first half of the year. But they rose more than India’s retail diesel prices.The trend cut sharply the premium of diesel to crude and to base oils prices.The diesel premium to base oils prices began to widen from July, reflecting the fall in prices during the third quarter. But it remained much lower than in 2021 and early this year.The surge in India’s imports of very light grades in 2021 had coincided with diesel prices rising to an unusually steep premium to base oils prices.The rise in imports in October mostly reflected a rebound in shipments from Qatar to around 20,000t. The volume was the second highest this year, after imports had almost completely halted during the previous two months.The rise in imports followed a surge in flows from the Mideast Gulf country to other key outlets in September.There was no such rebound in very-light grade supplies from South Korea.Imports from that market held in a low 55,000-65,000 t/month level since June.High diesel prices and strong demand for middle distillates incentivized South Korean refiners to pour very-light grade base oils back into the diesel pool..S Korea's Sept base oils output falls.Imports from the country had averaged close to 120,000 t/month in 2021..India’s Sept v light-grade imports fall
