Total base oil exports keep dropping – in February, the number reached 97.70 kt which is 16% less than in January and 28% less than in December 2020. February export loading were also 8% lower comparing to February 2020.
The reason for the export drop was increased demand from domestic market, stockpiling ahead of maintenances and lower number of days in February compared to January.
The Russian domestic base oil supplies by rail increased by 12.75 kt to 117.73 kt.
Omsk and Yaroslavl refineries planned turnarounds in February – March.
Comparing to January where exports to Baltic terminals were the highest since 2018, in February they decreased by 38% to 41.07 kt. Export to Black Sea increased by 6kt to 27.73 kt
Export to Lithuania dropped almost 4 times from 8.14kt to 2.30kt in February compared to the previous month.
Another key market – Ukraine – also received less base oil in February: 5.76kt which was 31% less compared to January 2021.
Lukoil’s Perm refinery cut export loading in February the most compared to other base oils producers, overseas loadings were 21.77kt or almost 10kt lower compared to the previous month.
Base oils exports in March are expected to decrease as more maintenances further limit product availability while domestic demand is increasing on the agricultural season start.