08 April 2014 17:40 [Source: ICIS news]
LONDON (ICIS)--A shift in conditions in the Black Sea base oils market has led to expectations of price increases in April, participants said on Tuesday.
Demand for base oils from Turkish buyers has been much improved following the conclusion of regional elections last week, leading to increased offers in the market.
“The Turkish Lira is appreciating strongly against the US dollar, if this continues then demand will continue to get better,” an importer and trader said.
Contributing further to the upward sentiment has been the lack of Russian material in the market owing to a maintenance programme, this has resulted in limited availability of base oils cargoes on prompt dates.
“There is not much product available, sellers may be looking to increase prices for end of April delivery due to the shortage,” one trader said.
Lukoil’s units at Perm and Nizhny Novgorod, in Russia, with production capacities of 480,000 tonnes/year and 345,000 tonnes/year, were taken off line for two and one months, respectively, from the beginning of March.
Gazprom Neft’s units at Omsk and Yaroslavl, in Russia, with capacities of 324,000 tonnes/year and 250,000 tonnes/year, were also taken offline at the beginning of March and are scheduled to complete their turnarounds on 19 April and 25 April, respectively.
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