Global base oils exports to the Middle East rose to a three-month high in July amid a pick-up in shipments from Europe and Asia.The rise in shipments replenished buyers’ stocks, curbing their urgency to lock in additional volumes unless prices were at competitive levels.The recent slide in crude oil prices added to the attraction of the leverage to hold back.Total base oils exports to the UAE and Saudi Arabia combined rose to more than 43,000 tonnes in July, up from around 15,000 tonnes the previous month, government data showed.The supplies originated from US, Europe and Asia.Exports to the region slowed to around 92,000 tonnes in the second quarter of the year, down from almost 177,000 tonnes during the first three months of the year.Shipments surged early in the year as suppliers in all the regions sought to clear surplus volumes from their markets.Exports slowed in the second quarter as surplus supply tightened and buyers focused on working down their brimming stocks.The rise in shipments in July remained lower than the surge in exports in the first quarter of the year.At the same time, the rise in flows from Europe and Asia pointed to a pick-up in surplus volumes in those markets.Exports from Asia to the region showed signs of extending their rise in the month of August.The rise in shipments coincided with a seasonal slowdown in demand in the Middle East in the third quarter of the year, raising the prospect of another build-up of surplus supplies.Increasingly weak Group II heavy-grade base oils prices in the region pointed to some such signs of weaker supply-demand fundamentals.The premium of CFR UAE Group II heavy grades over FOB NE Asia prices fell in August to the lowest in more than two years, then extended its fall in September.The premium of Group II heavy-grade prices over Group I heavy neutrals also fell sharply in August, after climbing in July to the highest in more than two years.The dynamic again reflected signs of tighter availability of higher-quality Group I base oils in the region.The pick-up in exports from Europe in July could help to ease that shortage. But most of the supplies originated from the Netherlands rather than Italy. The Mediterranean country was previously the largest source of Europe’s base oils exports to the UAE.Italy is a key producer of Group I base oils. The Netherlands is Europe’s sole producer of virgin Group II base oils. .S Korea’s July exports to India/Mideast Gulf stay lower.US July base oils exports fall
Global base oils exports to the Middle East rose to a three-month high in July amid a pick-up in shipments from Europe and Asia.The rise in shipments replenished buyers’ stocks, curbing their urgency to lock in additional volumes unless prices were at competitive levels.The recent slide in crude oil prices added to the attraction of the leverage to hold back.Total base oils exports to the UAE and Saudi Arabia combined rose to more than 43,000 tonnes in July, up from around 15,000 tonnes the previous month, government data showed.The supplies originated from US, Europe and Asia.Exports to the region slowed to around 92,000 tonnes in the second quarter of the year, down from almost 177,000 tonnes during the first three months of the year.Shipments surged early in the year as suppliers in all the regions sought to clear surplus volumes from their markets.Exports slowed in the second quarter as surplus supply tightened and buyers focused on working down their brimming stocks.The rise in shipments in July remained lower than the surge in exports in the first quarter of the year.At the same time, the rise in flows from Europe and Asia pointed to a pick-up in surplus volumes in those markets.Exports from Asia to the region showed signs of extending their rise in the month of August.The rise in shipments coincided with a seasonal slowdown in demand in the Middle East in the third quarter of the year, raising the prospect of another build-up of surplus supplies.Increasingly weak Group II heavy-grade base oils prices in the region pointed to some such signs of weaker supply-demand fundamentals.The premium of CFR UAE Group II heavy grades over FOB NE Asia prices fell in August to the lowest in more than two years, then extended its fall in September.The premium of Group II heavy-grade prices over Group I heavy neutrals also fell sharply in August, after climbing in July to the highest in more than two years.The dynamic again reflected signs of tighter availability of higher-quality Group I base oils in the region.The pick-up in exports from Europe in July could help to ease that shortage. But most of the supplies originated from the Netherlands rather than Italy. The Mediterranean country was previously the largest source of Europe’s base oils exports to the UAE.Italy is a key producer of Group I base oils. The Netherlands is Europe’s sole producer of virgin Group II base oils. .S Korea’s July exports to India/Mideast Gulf stay lower.US July base oils exports fall
