Mideast domestic base oil ex-tank prices fall on lower offers

24 September 2012 10:21  [Source: ICIS news]

SINGAPORE (ICIS)--Base oil prices in the Middle East ex-tank market have fallen on the back of lower-priced offers heard for bulk cargoes, according to market players on Monday.

Prices were assessed as $10/tonne (€7.70/tonne) lower week on week at the high end of the range for both the SN150 and SN500 grades at $1,000-1,010/tonne ex-tank Sharjah and $1,020-1,045/tonne ex-tank Sharjah, respectively, during the week ended 20 September, according to data from ICIS.

“There is some excess supply in the United Arab Emirates (UAE) held by a few traders and some of these cargoes have even been offered to India and Turkey,” a trader said.

A 5,000 tonne Middle East-origin cargo of SN500 base oils was heard sold to a buyer in India at $1,030-1,040/tonne CFR (cost & freight) India.

“Buyers in India have gained interest for Middle East exports as prices of European and southeast Asian cargoes increased in the same week,” another market player said, adding that the firmer European prices have made it unfeasible for the buyers to ship these cargoes.

Prices on a FOB (free on board) Europe were $20/tonne higher at $1,010-1,035/tonne, while those on a FOB Baltic Sea and FOB Black Sea bases were $10-30/tonne firmer at $990-1,020/tonne and $980-1,000/tonne respectively for both SN150 and SN500 base oils.

($1 = €0.77)

By: Andrea Heng
+65 6780 4359

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