Spore May base oil imports stay lower

Singapore’s base oil imports fell in May for a tenth month from year-earlier levels, reflecting the Asia-Pacific market’s healthier availability of supplies compared with the same time last year.

Base oil imports of 71,490t in May rose from 64,600t the previous month, government data showed. The volume was slightly higher than average imports of 69,670 t/month over the past year.

Total imports of 314,290t in the first five months of the year were down 28pc from 438,350t during the same period last year.

The surge in imports in the year to mid-2021 was unusual and partly helped to cover for lower base oils output in Singapore during that period.

The drop in shipments since the middle of last year followed a recovery in base oil production from around that time. The rise in domestic production countered the need for additional overseas supplies.

Even with that rise in domestic output, Singapore’s base oil imports have remained higher than before the Covid-19 pandemic struck in early 2020.

The city-state’s base oil imports averaged around 51,000 t/month in 2019 and 46,000 t/month in 2018.

The higher import levels have coincided with lower base oil export volumes from Singapore compared with pre-Covid-19 levels.

The lower exports suggested domestic base oils production has yet to return to pre-Covid 19 levels, with supply continuing to benefit from top-up volumes from overseas sources.