Indonesia’s January premium-grade base oil exports rise

Indonesia’s premium-grade base oil exports recovered in January after slipping in December to a 13-month low.

Base oil exports of 29,020t in January rebounded from 19,000t the previous month, government data showed. The January volume was similar to average levels of 29,570 t/month in 2021.

Almost the whole volume originated from the port of Dumai in Sumatra.

Some 17,000t of premium-grade base oils moved to South Korea in January. The northeast Asian country is usually the largest recipient of these supplies each month.

Some 8,000t of base oils moved to the Netherlands in January. The shipments followed a dearth of such cargoes in December. These base oil exports to the northwest European country typically come to around 8,000 t/month.

Exports of 4,000t of base oils to China were the largest volume to that market in a year.

Global Group III base oil prices surged in 2021 to unusually steep premiums to Group I and Group II base oils. The premium has remained unusually wide so far this year.

The price strength reflects the growing demand for and limited new production capacity of these premium-grade base oils.

A major Group III base oil plant is situated at Dumai.