Exports rise to highest in almost five months
Domestic shipments surge, cutting reliance in re-exports from other markets
Exports include unusually large shipment to US
Singapore’s base oils exports rose to their highest in almost five months in the four weeks to 26 November, amid signs that fresh supply from a newly commissioned unit began to move into global markets.
Total exports exceeded 175,000 tonnes, the highest since early July, government data showed.
Exports got a boost from a sharp jump in shipments originating from domestic refiners to the highest since late March.
The surge in locally-sourced cargoes slashed the need for re-exports of supplies originating from other markets.
Re-exports accounted for less than 14% of total shipments in the past four weeks, down from around 20% in the seven months to October.
Domestic shipments included the largest cargo to the US in more than five years.
The shipment reversed a trend of unusually large flows of base oils from the US to Singapore over the past year.
The shipment could mark the early stages of stock-building of new supplies in the US following the September start-up of Singapore’s new Group II base oils unit.
The unit is the refiner’s only plant capable of producing a new Group II heavy-grade base oil that can serve as an alternative to Group I brightstock for many applications.
Supplies of the Group II heavy-grade base oil are set to be available globally, with volumes shipped from Singapore to key outlets including the US and Europe.
