Global base oils exports to key markets in Africa fell to a six-month low in May amid a slump in shipments from the US.The drop in US exports highlighted the volatility of shipment volumes from that source and the incentive for buyers in Africa to line up more reliable supply options instead.It also highlighted the ongoing importance and reliance on supplies from Europe to cover most of Africa’s base oils requirements.That reliance is also problematic in view of the steady fall in Europe’s structural base oils production capacity in recent years, including this year.The drop in capacity cut its availability of Group I base oils especially for markets beyond Europe.The trend highlighted the attraction for buyers in Africa to use more premium-grade base oils instead of Group I base oils in view of the ongoing rise in production capacity of the higher-quality product.The need for more reliable supply sources and for producers with premium-grade base oils could increase buyers’ interest in supplies from new production capacity that is set to come online in India and Asia over the coming year.Base oils exports to Egypt, Nigeria, South Africa, and Kenya combined fell to less than 45,000 tonnes in May, government and shipping data showed.The volume fell from close to 85,000 tonnes in April and for a fourth month from year-earlier levels.The shipments originated mostly from the US and Europe, as well as some supplies from other sources. The slump in shipments mostly reflected a fall in exports from the US to less than 7,500 tonnes in May, from more than 20,000 tonnes the previous month.Exports slowed amid tighter surplus US supply and firm domestic demand in that market.Exports to Nigeria saw the largest fall, with shipments of less than 4,000 tonnes to that market in May.Exports to the country averaged more than 25,000 tonnes/month in 2023.The slowdown reflected the country’s reliance on spot shipments for a large share of its imports and the subsequent drop in availability of spot supplies from sources like US and Europe.The country’s currency issues compounded the slowdown by incentivizing suppliers with spot shipments to prioritize other markets instead.Exports to Egypt slowed in May amid a pause in shipments from Saudi Arabia and the US, as well as lower volumes from Europe.There were instead signs of a pick-up in flows from Russia to Egypt..Global base oil exports to Middle East fall in May.US’ May base oils/lube exports fall
Global base oils exports to key markets in Africa fell to a six-month low in May amid a slump in shipments from the US.The drop in US exports highlighted the volatility of shipment volumes from that source and the incentive for buyers in Africa to line up more reliable supply options instead.It also highlighted the ongoing importance and reliance on supplies from Europe to cover most of Africa’s base oils requirements.That reliance is also problematic in view of the steady fall in Europe’s structural base oils production capacity in recent years, including this year.The drop in capacity cut its availability of Group I base oils especially for markets beyond Europe.The trend highlighted the attraction for buyers in Africa to use more premium-grade base oils instead of Group I base oils in view of the ongoing rise in production capacity of the higher-quality product.The need for more reliable supply sources and for producers with premium-grade base oils could increase buyers’ interest in supplies from new production capacity that is set to come online in India and Asia over the coming year.Base oils exports to Egypt, Nigeria, South Africa, and Kenya combined fell to less than 45,000 tonnes in May, government and shipping data showed.The volume fell from close to 85,000 tonnes in April and for a fourth month from year-earlier levels.The shipments originated mostly from the US and Europe, as well as some supplies from other sources. The slump in shipments mostly reflected a fall in exports from the US to less than 7,500 tonnes in May, from more than 20,000 tonnes the previous month.Exports slowed amid tighter surplus US supply and firm domestic demand in that market.Exports to Nigeria saw the largest fall, with shipments of less than 4,000 tonnes to that market in May.Exports to the country averaged more than 25,000 tonnes/month in 2023.The slowdown reflected the country’s reliance on spot shipments for a large share of its imports and the subsequent drop in availability of spot supplies from sources like US and Europe.The country’s currency issues compounded the slowdown by incentivizing suppliers with spot shipments to prioritize other markets instead.Exports to Egypt slowed in May amid a pause in shipments from Saudi Arabia and the US, as well as lower volumes from Europe.There were instead signs of a pick-up in flows from Russia to Egypt..Global base oil exports to Middle East fall in May.US’ May base oils/lube exports fall
