Category: News

EMEA Base Oil Price Report 03.05.2022

A number of shortages are starting to emerge from war in Ukraine. Agriculture seems hardest hit, with supplies of vegetable oils, cereals and some fruits all in danger of shortages through the summer months and into the winter. Fuel is in short supply, as are all petroleum products, including base oils.

The plight of the lubricant trade in Ukraine is plain for all to see as blenders still operating face constraints on supplies of base stocks and additives. There are also reports of difficulties for crude oil deliveries in the Black Sea region, a large part of which has come under Russian control. Further shortages and lack of basic materials are forecast to start happening over the next few months. read more

EMEA Base Oil Price Report 22.03.22

The war in Ukraine continues with significant loss of life reported for both sides. The economic consequences of the conflict are yet to be fully visible, but with that Russia could default on loan repayments, the signs are there for all to see.

The economic fallout from the onslaught is being felt by those in the West mainly through rising energy prices, which in turn are being passed on to consumers down the line causing startling inflation figures to be issued from central banks around the world. In the United Kingdom alone, figures in excess of 10% inflation are being considered for later this year and next, and economists warn the the United States could face rates higher than 8%. Sanctions have been issued and applied in a number of areas, including a U.S. announcement of a total ban on energy products coming out of Russia. So far European nations have imposed financial sanctions on Russian banks and individuals but have stopped short of banning imports of Russian crude, natural gas and petroleum products. read more

EMEA Base Oil Price Report 09.02.22

Closing in on the end of its second week, Russia’s invasion of Ukraine is causing some of the most serious armed fighting in Europe since the end of the Second World War. Vast swathes of people are being distressed and driven to flee Ukraine for the safety of the nearby countries such as Moldova, Poland, Hungary and further afield into other European refuges.

Economic sanctions have been imposed by many nations, and the effects of these sanctions is starting to impact the Russian economy through curbs on banking and the transfer of international payments. In the medium to longer term this could limit travel and shipments of goods from Russia. read more

EMEA Base Oil Price Report 22.02.22

The base oil industry, along with other petroleum product markets, entered into what may be considered, the “perfect storm.” This may be true in both a literal, and also a descriptive sense. Given that base oil markets were already constrained by refinery cutbacks due to the global Covid-19 pandemic, and the subsequent lack of feedstocks due to lower production of distillate fuels, the recent freezing weather in the U.S. has affected output and production from a number of critical refineries, many of which were producing base oils. read more

EMEA Base Oil Price Report 09.02.22

Ongoing tensions over Russia’s military build-up on Ukraine’s borders continue to disrupt supply of goods and raw materials going into Ukraine, but local sources indicate that a number of lubricant blenders throughout the country are still obtaining base oils and additives and producing lubes to meet domestic requirements.

Of course no Russian export barrels are moving into the Ukrainian market at this time, although other sources in areas such as Iran, Saudi Arabia and Europe have offered to step up. read more

EMEA Base Oil Price Report 25.01.22

The world is on tenterhooks as Russian troops amass at the border of Ukraine without so far declaring any intentions as to their reason to be there, other than to provoke western nations into rebukes and warnings of any invasion of Ukraine.

The uncertainty of future events is weighing heavily on trade and commerce across the region and is involving other nations such as the United States, China, the European Union and the United Kingdom. Representations were voiced and continue to be made to Putin and his government. read more

EMEA Base Oil Price Report 11.01.22

Base oil trading was relatively muted last week as celebrations in Russia, Greece and other Christian Orthodox countries prolonged the holiday season following Christmas and New Year festivities in areas that follow the Gregorian calendar. COVID-19 also played a role as main markets through Europe, the Middle East and Africa suffered from isolation practices or people missing work.

Prices have been difficult to gauge with little movement from December’s levels, whilst raw material costs continue to increase with crude and feedstock prices starting to climb despite assurances from Opec and other large producers that they are pushing increasing quantities of crude oil on to the market to try to hold down prices, or at least contain them in the bands established during the first few days of 2022. read more

EMEA Base Oil Price Report 14.12.21

Base oil prices around the Europe, Middle East and Africa regions are softer this week, as the new Omicron COVID-19 variant starts to impact on markets across the globe. Many countries are facing renewed restrictions on the movement of people and goods with some recommending only necessary travel and essential services and others going into or considering temporary lockdowns to stem the spread of the new variant.

Base oil demand is usually slower around this time of year, with many operations starting to run down towards the holiday period around Christmas and New Year when many blenders will either close or move to short-time working for two weeks into January 2022. The overall effect is that the markets are sluggish with many buyers sitting on the fence, waiting to see where prices are going, since crude and feedstock levels have also dropped from their recent peaks during November. The outlook is that base oil prices will continue to drift lower over the next few months, due to adequate supplies and availabilities of all grades, and weaker demand caused by the ongoing pandemic. read more

EMEA Base Oil Price Report 29.11.21

Base oil markets reeled in recent days from news of another variant to the COVID-19 virus, which appears to have extended from southern African states. Just as base oil players were looking forward to 2022 for a new beginning and perhaps a return to some form of normality, they have been jolted with prospects of more international restrictions in movement of people and goods and new lockdowns in many countries.

This scene does not augur well for December, or indeed the first part of next year, and with the northern hemisphere going into winter, signs for all markets are ominous. read more

EMEA Base Oil Price Report 16.11.21

Base oil demand is unseasonably strong in some parts of Europe, the Middle East and Africa, while trading in others is slowing as it typically does at this time of year. Activity in the main markets of Europe and the Middle East Gulf is weakening overall, but some exceptionally large base oil parcels have been witnessed moving into and out of these regions.

A recent spike in API Group I prices appears to have petered out, and values for this category have slipped almost across the board since our previous report. Group II levels have also come under more sustained pressure, falling from the heights attained during the summer and early autumn, though less sharply than the decreases for Group I. read more