Middle East Group I SN500 base oils prices stable in limited deals

SINGAPORE (ICIS)–Prices of Group I base oils in the Middle East were stable in the week ended 1 February amid limited deals for Iran-origin material, market sources said late on Thursday.

Prices of Group I SN500 base oils from a key Iranian producer were maintained in the absence of any fresh offers.

Meawhile, selling indications for SN500 from other Iranian producers were at $805-810/tonne FOB (free on board) Iran, within the ICIS range of the previous week.

Market sources said Iran refiners appeared to be in wait-and-see mode as they reviewed current market fundamentals after sharp increases in prices over the last few months.

The actual volume of available cargoes were also unclear as discussions for Iran shipments had essentially dried up over the last few weeks, market sources said.

In the domestic market in the United Arab Emirates (UAE), deals in SN500 were heard at $833-835/tonne ex-tank Sharjah, also within the previous week’s ICIS range.

Limited offers were heard this week for deep-sea cargoes of SN500, which were heard to be loading in January. Those cargoes were believed to have been sold in the $830-850/tonne CFR UAE range.