Argentina’s base oils supply rose to a thirteen-month high in August, with imports getting a boost from the delivery of a rare shipment from Saudi Arabia.The cargo extended a trend of base oils shipments from the US accounting for a shrinking share of Argentina’s total supply so far this year.The dynamic could be more problematic over the coming months if the US market sees a rise in surplus supplies and the need for more outlets to place those volumes.Argentina’s base oils supply of 25,100 cubic meters (22,200 tonnes) in August rose from 15,100 cubic meters the previous month to the highest since July 2023, government data showed.Supply in August also outpaced demand by the largest volume since the third quarter of last year.The trend extended a recent pattern of higher then lower supply from one month to the next, and of supply outpacing then lagging demand.The dynamic left supply and demand relatively balanced so far this year.But the composition of the supply was different.Argentina’s base oils output of 11,000 cubic meters in August extended a trend of relatively firm production levels since April.It also boosted domestic production as a share of total supply to more than 55% of the total in the first eight months of the year, up from 45% in 2023.The higher output in turn trimmed Argentina’s requirements for base oils imports, which fell by 7% in the first eight months of the year.Imports from the US fell by a steeper 16% during that period, even with a dearth of supplies from South Korea so far this year.The disconnect partly reflected a pick-up in shipments from the Middle East.Argentina continued to take delivery of regular shipments of premium-grade base oils from Qatar so far this year.It also took delivery in August of a large cargo from Saudi Arabia.The shipment was the first from the country in at least four years.The volume of the shipment far exceeded Argentina’s total imports from US in July and August combined.The cargo could be a one-off shipment.It could also reflect the expansion of the distribution of base oils supplies from Saudi Arabia into another market.A further expansion into Latin America would be attractive in view of the expected rise in base oils production capacity in Asia-Pacific over the coming year..Argentina’s August lube demand falls.Saudi Arabia’s Aug Yanbu/Jeddah exports rise
Argentina’s base oils supply rose to a thirteen-month high in August, with imports getting a boost from the delivery of a rare shipment from Saudi Arabia.The cargo extended a trend of base oils shipments from the US accounting for a shrinking share of Argentina’s total supply so far this year.The dynamic could be more problematic over the coming months if the US market sees a rise in surplus supplies and the need for more outlets to place those volumes.Argentina’s base oils supply of 25,100 cubic meters (22,200 tonnes) in August rose from 15,100 cubic meters the previous month to the highest since July 2023, government data showed.Supply in August also outpaced demand by the largest volume since the third quarter of last year.The trend extended a recent pattern of higher then lower supply from one month to the next, and of supply outpacing then lagging demand.The dynamic left supply and demand relatively balanced so far this year.But the composition of the supply was different.Argentina’s base oils output of 11,000 cubic meters in August extended a trend of relatively firm production levels since April.It also boosted domestic production as a share of total supply to more than 55% of the total in the first eight months of the year, up from 45% in 2023.The higher output in turn trimmed Argentina’s requirements for base oils imports, which fell by 7% in the first eight months of the year.Imports from the US fell by a steeper 16% during that period, even with a dearth of supplies from South Korea so far this year.The disconnect partly reflected a pick-up in shipments from the Middle East.Argentina continued to take delivery of regular shipments of premium-grade base oils from Qatar so far this year.It also took delivery in August of a large cargo from Saudi Arabia.The shipment was the first from the country in at least four years.The volume of the shipment far exceeded Argentina’s total imports from US in July and August combined.The cargo could be a one-off shipment.It could also reflect the expansion of the distribution of base oils supplies from Saudi Arabia into another market.A further expansion into Latin America would be attractive in view of the expected rise in base oils production capacity in Asia-Pacific over the coming year..Argentina’s August lube demand falls.Saudi Arabia’s Aug Yanbu/Jeddah exports rise
