Russia’s base oil exports have reached their minimum since September 2020 on falling export demand and higher domestic prices in July. Comparing to June exports fell 12% and reached 78.13kt.
After reaching their peak at the end of May – early June, base oils prices started to fall, SN 150 fob Baltic prices fell by 230 USD/mt and SN 500 fob Baltic dropped 460 USD/mt from early June till the of July, according to Argus Base Oils estimates.
Taneco refinery almost stopped export in July because of the maintenace started in June, the refinery got back to export in August. It exported about 1600 tons in July vs. average of 7700 tons in January-June 2021. Taneco is Russian key export of Group III 4 cSt grade also known as VHVI-4.
Volgograd reduced export loading by river 3 times in July, its export loading by rail also dropped by one third which let to total exports by this refinery at 13200 tons. River exports in May and July were at lowest level in a more than a decade.
Base oil exports via Riga reduced 65% less comparing to June (22.88kt). Black Sea exports, in contrary, slightly increased – from 5.56kt in June to 7.78kt in July, which is the lowest number since 2017.
While export to key Baltic and Black Sea ports decreased, Ukraine and other CIS counties increased imports of Russian base oils, taking advantage of lower prices. Ukraine imported by rail 7.04 kt in July compared to 4.24kt in June and only 1.95kt in May.
Only two refineries that managed to increase exports in July were Lukoil refinery in Perm and Rosneft refinery in Angarsk. Both refineries increased rail exports of base oils in July by approximately 4.19kt which makes it 22% and 44% more respectively as opposed to June same year.
Russia exports Group I such as SN150, SN350, SN500, SN900 and BS-150. Refineries from ex-USSR also export light grades of Group II (70N) and Group III base oils: VHVI-4, VHVI-6 and VHVI-8. Trading company Legion Oil & Gas LLC helps to get the best quality base oils for reasonable prices with guaranteed delivery and minimum risk. For your inquiries, please contact us via the form on our website or via email info@legionoilandgas.com.
