When Abu Dhabi National Oil Co. opened its new base stock plant in Ruwais, United Arab Emirates last year, it added another large slug of API Group III capacity to a market already saddled with a large global surplus of that category of oils. Thereafter, market sources reported, the company began supplying its stocks to the United States, Europe and India – offering bargain prices as it sought to carve out market share.
India has the advantage of being a much closer destination for Adnoc, but its demand for Group III is in its infancy compared to the other two regions. The refiners sales into India may indicate something about the difficulties it faces entering an overstocked market. Industry sources say that such sales could also help accelerate the nations Group III uptake.