The delivery of premium-grade base oils from the Middle East to key global outlets fell to a five-month low in July amid a sharp dip in shipments from Qatar.The key outlets of US, Europe and Asia took delivery of more than 170,000 tonnes in July from Qatar, UAE and Bahrain combined, government data showed.The volume fell from more than 270,000 tonnes the previous month to the lowest since February.Imports from Qatar fell to less than 100,000 tonnes in July for the first time since the beginning of the year.The slowdown followed larger-than-usual shipments of more than 190,000 tonnes in June and included a large dip in supplies to every major outlet.Imports from Bahrain and the UAE combined were relatively steady at around 76,000 tonnes in July. They were at a similar level in May and June.But there was a sharper change in the destination of the shipments from Bahrain and the UAE.The US and Asia saw imports from the two countries fall by more than 30% in July from the previous month.Europe’s imports from Bahrain and UAE by contrast more than tripled in July to a nine-month high of more than 30,000 tonnes.The jump in Europe-bound shipments followed a rise in the region’s Group III base oils prices relative to US and Asia prices since the start of the second quarter of the year.The trend extended into September.The premium of Europe Group III prices over US prices climbed this month to the highest since first-half 2023. The premium of Europe prices over FOB Asia prices rose to the highest this year.The firmer prices boosted the attraction of continuing to move more shipments to Europe.The firmer prices and pick-up in imports also suggested that shipments from Bahrain and UAE were more responsive than shipments from Qatar to arbitrage opportunities in specific markets.An extension of the trend raised the prospect of a sharper rise in shipments from the Middle East to Europe once flows from Qatar revert to more typical levels..Europe’s July Group III supply stays rangebound.US’ July base oils imports stay firmer
The delivery of premium-grade base oils from the Middle East to key global outlets fell to a five-month low in July amid a sharp dip in shipments from Qatar.The key outlets of US, Europe and Asia took delivery of more than 170,000 tonnes in July from Qatar, UAE and Bahrain combined, government data showed.The volume fell from more than 270,000 tonnes the previous month to the lowest since February.Imports from Qatar fell to less than 100,000 tonnes in July for the first time since the beginning of the year.The slowdown followed larger-than-usual shipments of more than 190,000 tonnes in June and included a large dip in supplies to every major outlet.Imports from Bahrain and the UAE combined were relatively steady at around 76,000 tonnes in July. They were at a similar level in May and June.But there was a sharper change in the destination of the shipments from Bahrain and the UAE.The US and Asia saw imports from the two countries fall by more than 30% in July from the previous month.Europe’s imports from Bahrain and UAE by contrast more than tripled in July to a nine-month high of more than 30,000 tonnes.The jump in Europe-bound shipments followed a rise in the region’s Group III base oils prices relative to US and Asia prices since the start of the second quarter of the year.The trend extended into September.The premium of Europe Group III prices over US prices climbed this month to the highest since first-half 2023. The premium of Europe prices over FOB Asia prices rose to the highest this year.The firmer prices boosted the attraction of continuing to move more shipments to Europe.The firmer prices and pick-up in imports also suggested that shipments from Bahrain and UAE were more responsive than shipments from Qatar to arbitrage opportunities in specific markets.An extension of the trend raised the prospect of a sharper rise in shipments from the Middle East to Europe once flows from Qatar revert to more typical levels..Europe’s July Group III supply stays rangebound.US’ July base oils imports stay firmer
