The delivery of premium-grade base oils from the Middle East to key global outlets rose to a three-month high in September amid a surge in shipments to the US.Supplies bound for Asia also rose even with more muted demand from China.The key outlets of US, Europe and Asia took delivery in September of more than 245,000 tonnes of base oils from Bahrain, Qatar and UAE combined.The volume rose from less than 215,000 tonnes in August and for the third time in four months from year-earlier levels.Imports rose amid a recovery in supplies from Qatar, while shipments from UAE and Bahrain held firm.The three countries are home to major Group III or Group III+ base oils units.Supply rose even in the face increasingly weak global Group III base oils prices.Supply to the US surged even with Group III prices in that market at a steep discount to prices in Europe and Asia.US imports of more than 135,000 tonnes from the Middle East in September more than doubled from the previous month to a two-year high.The rising volume added to pressure on the country's already-weak domestic Group III prices.The premium of US Group III 4cSt prices over Group II light grades fell in the third quarter of the year to the lowest level in more than six years.The rise in shipments to the US coincided with signs of weaker supply-demand fundamentals in Europe, as well as more muted buying interest in China.China’s imports from the three Middle East Gulf countries fell by 46% in September from a year earlier and by 8% in the first nine months of the year.The contraction contrasted with a 68% rise in Asia’s base oils imports in September from the three countries and a 3% rise in shipments during the first nine months of the year.The rise in total shipments masked a drop in the region’s imports from UAE and Bahrain in the first nine months of the year.An extension of that trend raised the prospect of more shipments from UAE and Bahrain targeting the US, and to a lesser extent Europe, over the coming months..Europe’s Sept Group III supply falls.US’ September base oils imports surge.Global exports to Middle East fall in September
The delivery of premium-grade base oils from the Middle East to key global outlets rose to a three-month high in September amid a surge in shipments to the US.Supplies bound for Asia also rose even with more muted demand from China.The key outlets of US, Europe and Asia took delivery in September of more than 245,000 tonnes of base oils from Bahrain, Qatar and UAE combined.The volume rose from less than 215,000 tonnes in August and for the third time in four months from year-earlier levels.Imports rose amid a recovery in supplies from Qatar, while shipments from UAE and Bahrain held firm.The three countries are home to major Group III or Group III+ base oils units.Supply rose even in the face increasingly weak global Group III base oils prices.Supply to the US surged even with Group III prices in that market at a steep discount to prices in Europe and Asia.US imports of more than 135,000 tonnes from the Middle East in September more than doubled from the previous month to a two-year high.The rising volume added to pressure on the country's already-weak domestic Group III prices.The premium of US Group III 4cSt prices over Group II light grades fell in the third quarter of the year to the lowest level in more than six years.The rise in shipments to the US coincided with signs of weaker supply-demand fundamentals in Europe, as well as more muted buying interest in China.China’s imports from the three Middle East Gulf countries fell by 46% in September from a year earlier and by 8% in the first nine months of the year.The contraction contrasted with a 68% rise in Asia’s base oils imports in September from the three countries and a 3% rise in shipments during the first nine months of the year.The rise in total shipments masked a drop in the region’s imports from UAE and Bahrain in the first nine months of the year.An extension of that trend raised the prospect of more shipments from UAE and Bahrain targeting the US, and to a lesser extent Europe, over the coming months..Europe’s Sept Group III supply falls.US’ September base oils imports surge.Global exports to Middle East fall in September
