Argentina’s base oils supply lagged demand in September for the second time in three months even with an ongoing slide in the country’s lube consumption.Argentina’s base oils imports fell even more sharply than demand.The dynamic raised the prospect of a drop in the country’s base oils inventories and a sharper pick-up in demand for overseas supplies when lube consumption revives.Base oils supply, or domestic output and imports combined, fell to 10,100 cubic meters (9,000 tonnes) in September, government data showed.The volume fell from more than 25,000 cubic meters in August to the second-lowest level this year.It also lagged demand of around 20,000 cubic meters in September and in each of the previous five months to September.Argentina’s base oils output accounted for 70% of supply in September and 57% of supply in the first nine months of the year.The share was up from a 45% share in 2023 and 31% share in 2022.The dynamic reflected the rise in Argentina's base oils output so far this year, even in the face of shrinking demand.The fall in demand instead had a larger impact on Argentina’s base oils imports, which slumped so far this year.The fall in imports had the largest impact on the US, whose shipments accounted for more than 70% of Argentina’s overseas supplies in 2023.The impact was all the larger in recent months amid a sustained pick-up in shipments from the Middle East.Supplies from the UAE accounted for almost all of the Argentina’s imports in September.Supplies from Saudi Arabia accounted for the largest share of the country’s imports in August.The share of imports from the US duly slumped to less than 30% of total shipments in August and September.A seasonal slowdown in lube demand in Argentina in the fourth quarter and blenders’ moves to trim inventories are likely to curb any significant recovery in the country’s base oils imports until next year.At the same time, Argentina would need to rely more on overseas shipments to cover supply requirements for any subsequent recovery in demand..Argentina's Sept lube demand falls.US’ August base oils exports rise
Argentina’s base oils supply lagged demand in September for the second time in three months even with an ongoing slide in the country’s lube consumption.Argentina’s base oils imports fell even more sharply than demand.The dynamic raised the prospect of a drop in the country’s base oils inventories and a sharper pick-up in demand for overseas supplies when lube consumption revives.Base oils supply, or domestic output and imports combined, fell to 10,100 cubic meters (9,000 tonnes) in September, government data showed.The volume fell from more than 25,000 cubic meters in August to the second-lowest level this year.It also lagged demand of around 20,000 cubic meters in September and in each of the previous five months to September.Argentina’s base oils output accounted for 70% of supply in September and 57% of supply in the first nine months of the year.The share was up from a 45% share in 2023 and 31% share in 2022.The dynamic reflected the rise in Argentina's base oils output so far this year, even in the face of shrinking demand.The fall in demand instead had a larger impact on Argentina’s base oils imports, which slumped so far this year.The fall in imports had the largest impact on the US, whose shipments accounted for more than 70% of Argentina’s overseas supplies in 2023.The impact was all the larger in recent months amid a sustained pick-up in shipments from the Middle East.Supplies from the UAE accounted for almost all of the Argentina’s imports in September.Supplies from Saudi Arabia accounted for the largest share of the country’s imports in August.The share of imports from the US duly slumped to less than 30% of total shipments in August and September.A seasonal slowdown in lube demand in Argentina in the fourth quarter and blenders’ moves to trim inventories are likely to curb any significant recovery in the country’s base oils imports until next year.At the same time, Argentina would need to rely more on overseas shipments to cover supply requirements for any subsequent recovery in demand..Argentina's Sept lube demand falls.US’ August base oils exports rise
