Thailand’s March exports hold steady

Thailand’s base oil exports were steady at lower levels in March, when some plant maintenance in the country was scheduled to take place.

Exports of 15,590 kilolitres (13,810t) in March edged up by 4pc from 15,010kl the previous month, government data showed.

Total exports of 46,700kl in the first quarter of the year fell from more than 63,000kl during the last three months of 2021 to the lowest in a year.

The country’s base oil exports slowed ahead of and during the plant maintenance work.

Thailand’s domestic demand also typically peaks in the first quarter of the year ahead of the Songkran festival in April. The stronger demand curbs the availability of supplies for export.

Like last year, regional base oil prices rose in the first quarter of the year. Surging feedstock and diesel prices were the key driver behind this year's rise in prices.

The surge in prices last year reflected more the strong demand and unusually tight availability of supply at that time.

Supply from Thailand was also tighter this year. But slower demand from China and a rise in availability from other sources in southeast Asia left the market better balanced.