Author: Specialist

EMEA Base Oil Price Report – 20.04.21

A bizarre scene has settled over base oil markets where traders and other spot buyers are complaining that product from all base oil groups is simply unavailable.

That said, there have been a large number of vessel fixtures and an even larger number of shipping inquiries for the remaining days of April. Many of the cargo movements around and about Europe, the Middle Eastern and Africa have involved the major players either meeting contract arrangements or re-positioning inventories from one hub to another. read more

EMEA Base Oil Price Report 23.03.21

European, Middle Eastern and African base oil markets were rocked by large price hikes caused mainly by a lack of available products for blenders and traders. Relationships between buyers and sellers have become all important in maintaining supplies on agreed terms and under contract. Spot supplies are something of a rarity these days, with some trades being booked up to three months in advance and values being index linked to trade reports.

Most affected were the API Group I camp, with reports of sellers declaring zero availability of most of the grades through April and now into May and June. Prices rose dramatically over the past two weeks, with one of the basic problems being when blenders committed to supply finished lubricants at agreed prices back some weeks or even months ago. These operations are now faced with purchase prices that have more than doubled in some cases, leading to re-negotiations and force majeure declared in situations where no, or little material, is to be found. read more

EMEA Base Oil Price Report 03.09.21

Base oil markets in Europe, the Middle East and Africa are lurching from one problem to another, with supply issues increasing exponentially as availability of various grades tightens. Shortages of some grades have now become a reality, with some buyers, particularly in the export markets, unable to lay hands on quantities needed to cover urgent requirements.

This is especially the case for API Group I requirements going into markets such as West Africa, the Middle East Gulf and the West Coast of India, where receivers are desperately looking to find suitable parcels but in more than one instance are coming up empty. Traditional sources such as the United States Gulf Coast, the Mediterranean and Northwestern Europe are all basically dry and offer few prospects for relief over the next few months. read more

EMEA Base Oil Price Report 23.02.21

Weather-related disruptions in Texas have caused a perfect storm for the base oil industry as new problems at multiple refineries exacerbated existing shortage caused by the impacts of COVID-19.

Looming maintenance shutdowns in Europe and East Asia could make the situation even worse, potentially destabilizing and derailing any post-pandemic recovery.

Basically there is currently not enough base oil to cover even the reduced level of base oil demand caused by the pandemic, and in the few locations where there is availability of base oils, they are either in the wrong place or are in insufficient quantities to cover requirements. read more

EMEA Base Oil Price Report: 09/02/2021

The seasonal rise in demand that would normally take shape at this time of year appears as if it may pass by base oil markets this year due to the ongoing crisis caused by the COVID-19 pandemic.

Base oil producers, resellers and blenders would normally have been anticipating a buoyant upturn in activity with lubricant operations gearing up for the spring and summer seasons when demand typically revives from winter doldrums in the northern hemisphere. Even in southern climes in Africa business normally ramps up now following the hot summer and rainy seasons. read more

EMEA Base Oil Price Report 26.01.21

The coronavirus again holds center stage. With the emergence of variants from the United Kingdom, South Africa and Brazil, many countries have again imposed various forms of lockdowns and restrictions on travel and trade, creating more trials and difficulties for the base oil industry.

There are still requirements for all forms of lubricant, although sectors such a transportation, industrial and travel have all been negatively affected by the pandemic, with demand falling in every sector. read more

EMEA Base Oil Price Report

The rollout of COVID-19 vaccines is raising hopes that the end of the pandemic may be in sight, but individuals in the base oil industry say it may take years to rebound from it, and some predict that full recovery may never happen.

Base oil prices are firmer across the board due to tight supply patterns and stronger numbers for crude and feedstocks. Demand is reviving in a number of European, Middle Eastern and African markets, with forecasts suggesting that the first few months of next year may see a period of catch-up as companies look to capitalize on stronger demand and a return to the “new normal.” read more

EMEA Base Oil Price Report 17.11.20

With most of mainland Europe and key locations in the Middle East and Africa still in some form of lockdown, economies are contracting, eroding demand for finished lubricants or base oils.

However, progress toward one or more vaccines is buoying hope that 2021 will bring a much improved market that benefits all regions. Improvements may come faster than predicted with some players suggesting that there may be a mini-boom before the end of the year.

The justification for this spike may be that refiners may have turned the corner, looking to produce more transportation fuels for the first quarter of next year. This in turn will increase the quantities of feedstock available for secondary production of specialties such as base oil and waxes. read more

EMEA Base Oil Report – 20.10.20

With a resurgence of COVID-19 sweeping through many countries in Europe, the Middle East and Africa, there appears to be little or no respite for commerce or industry.

Businesses have been hit badly by the effects of the coronavirus as demand for oil products plunged sharply. Economies are taking hit after hit, with no end in sight for many trying to survive. Many weaker and smaller businesses have folded never to reopen, closing the doors on many years of developing trade and services to the community. Companies involved in the base oil trade have not been excluded as a number of blending operations shut down. read more

The COVID-19 pandemic is once again tightening its grip on many markets – with Europe and the Americas seeing the biggest increases in caseloads and East Asia appearing the only region in recovery.

Base oil markets have not escaped the impacts, as demand for finished lubricants is suffering broadly. Europe and the Middle East have been badly affected, with new waves of infections developing in countries such as Spain, France, Germany and the United Kingdom. 

The impact on base oils has been uneven. Supply of API Group I grades has remained tight as demand from export markets climbs. A lack of availability for heavy Group I grades has driven some buyers to switch to Group II oils, causing a mini-spike in demand in there. The Group II segment would not be described as tight, but some grades are becoming scarcer, and some prices have begun to rise. read more