Singapore’s base oil imports edge up in February

Singapore's base oil imports increased for the third consecutive month in February, GTT data show, supported by stable demand in the city state.

• Import growth slowed in February, in line with a drop in industrial performance. The country's manufacturing output fell by 1.3pc on the year, and by 7.5pc on a seasonally adjusted month-on-month basis, according to data from the Economic Development Board.
• The overall manufacturing sector grew for the 18th consecutive month, but PMI slipped from 50.9 to 50.7 in February, data from the Singapore Institute of Purchasing and Materials Management show, in line with growing uncertainties over global trade flows. A PMI reading above 50 indicates expansion.
• Supplies from South Korea recovered from January's five-month low, in line with higher exports from the northeast Asian country, but remained below the five-year monthly average of 12,300t.
• Lower South Korean volumes were balanced by higher receipts of Taiwanese cargoes, which were likely boosted by delays in customs clearance a month earlier. South Korea and Taiwan are major producers of Group II base oils.
• Zero imports were recorded from Japan for the third consecutive month. Exports from the Group I supplier have fallen ahead of a series of plant maintenances by Japanese refiners ENEOS and Idemitsu that will affect around 925,000t/yr of refining capacity over February-November.
• Increased Saudi Arabian cargoes made up for the shortfall in Japanese volumes, with imports recorded for the 10th consecutive month. Saudi Arabia produces Group I and II base oils, but supplies to Singapore likely comprise of mainly Group I volumes because of the regional shortage from permanent plant closures in Japan.

By Tara Tang