14 August 2013 17:33 [Source: ICIS news]
LONDON (ICIS)--Domestic Egyptian base oil demand is being hampered by the ongoing political turmoil in the country, which is also impeding exports, a producer said on Wednesday.
The producer, which makes solvent neutral base oils, said there are high levels of uncertainty that are making it difficult to conduct business, and that local demand is insufficient to absorb its output. As a result, the producer said it has excess stock.
However, another effect of the upheaval has been difficulty in getting approvals for export, and so the producer cannot currently sell to buyers in other countries. The producer said it will offer material in the export as soon at it receives approval to do so.
With a large number of new governmental appointments being made, the producer said it was not clear how the strategies of the state-owned Egyptian General Petroleum Corporation - which controls many aspects of the Egyptian base oil market - would change.
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