Thailand’s April base oil exports fall

Thailand’s base oil exports fell in April to a 13-month low amid a halt in shipments to China for the second time in three months.

Total base oil exports of 11,440 kilolitres (10,130t) in April fell by 27pc from more than 15,000kl in each of the previous three months to the lowest since March 2021.

The country’s base oil exports fell even after the completion of plant maintenance work during the first quarter of the year.

The April shipments were the first set of cargoes that reflected the surge in base oil prices since second-half February. They also coincided with a strict lockdown in key regions of China.

The combination of higher prices and weaker Chinese demand cut buying interest from that market.

There were no base oil shipments from Thailand to China in April for the second time in three months.

The closed arbitrage to China, growing congestion at Chinese ports and high freight rates boosted the attraction of moving shipments to other, more nearby markets instead.

Thailand’s base oil exports to Singapore rebounded to 11,140kl in April, from 5,090kl the previous month.

The shipments accounted for more than 95pc of Thailand’s total exports. The share is usually closer to 50pc of the total.