Singapore’s Feb base oil exports stay rangebound

Singapore’s base oil exports edged up in February to a five-month high amid rising shipments to southeast Asia.

Total exports of 166,760t in February rose from 156,430t the previous month, government data showed. Exports were down just 1pc from year-earlier levels.

The steady volumes extended an increasingly protracted trend.

The island state’s base oil exports have mostly held in a 130,000-168,000 t/month range since the fourth quarter of 2020.

Exports had previously mostly held in a 220,000-300,000 t/month range during the two years to 2020.

Exports fell sharply from the first quarter of 2020 as a sharp drop in demand triggered an equally large fall in supply.

Demand fell during the period of lockdowns when the Covid-19 pandemic spread throughout the region. Supply fell as refiners responded by cutting production.

Demand has improved since then amid an increasingly widespread relaxation of lockdown measures.

But Singapore’s base oil exports have remained closer to levels in first-half 2020 than during the period before the outbreak of the Covid-19 pandemic.

Export volumes have remained at lower levels even as regional base oil prices have risen strongly since February and as spot availability of regional supplies has tightened.