Russian Group I base oils export volumes expected to grow in December while prices become more attractive, Legion Oil & Gas LLC market survey shows.
After base oils supply shortage caused by maintenances and high domestic demand from April to October this year supply situation improves among all Russian producers. Lukoil should finish in November maintenance at its Volgograd refinery which has capacity to product 550’000 tons of base oils per year. The refinery export mostly SN 150 and SN 500 base oils.
Rosneft has increased offered volumes during its December tender from Novokuybyshevsk, Angarsk, Ufa and Yaroslavl refinery. Total volume of Rosneft base oil and industrial oil offered for December loading exceeded 44’000 tons which is almost a quarter higher compared with November this year, as per Legion Oil & Gas LLC estimates.
Gazpromneft has offered SN 80, SN 150, SN 400, SN 500, SN 650, SN 1200 and BS-150 from Omsk and Yaroslavl refineries for late November loading. Refinery could offer as much as 15’000 tons of base oils due to end-year stock clearance according to some industry sources.
Group I base oils availability improvement has impacted the price: one of leading base oils pricing agencies has decreased it FOB Baltic quotation this week, reflecting lower prices from Russian refineries.
Group III maintenance is over
Tatneft plans to finish maintenance and resume export loading in December from its Group III and Group II 190’000 tons per year base oils unit at Taneco refinery in Nizhnekamsk city, Tatarstan region. The company produces Group III 4 cst base oil and Group II 2,5 cst base oil.
Rosneft is already offering Group III base oils from its 50% share of Yaroslavl refinery 100’000 tons per year Group III unit. The company offered 5400 tons of 2 cst, 4 cst and 8 cst base oils for loading in December. Gazpromneft is not offering from its share yet waiting till the quality stabilized.
All specification for Russian base oils you can find at Legion Oil & Gas LLC page: https://legionoilandgas.com/product/base_oil_and_-lubes/
Supply availability open creates new opportunities for buyers in Europe, Africa, Turkey and Middle east as availability from other export regions remains limited.
Legion Oil & Gas LLC is a base oils trading company focused on sourcing from Russia, Turkmenistan, Uzbekistan and Europe. Denis Varaksin will be presenting latest CIS base oils market developments at The European Base Oils and Lubricants Interactive Summit in Antwerp during 29-30 November 2017. Mr. Varaksin will be presenting topic “Russia’s role in meeting demand for Group III base oils”.
For supplies of Group I, group II and Group III base oils in trucks, iso-containers, flexi-tanks or rail tank cars please send a request through our website www.legionoilandgas.com or email address info@legionoilandgas.com.
