Argentina’s base oils supply rose in January as domestic output rebounded to a six-month high.Higher output outweighed a fall in base oils imports to a five-month low.The diverging trends followed the sharp depreciation of the country’s currency versus the US dollar in December.The weaker currency increased the cost of imports in local currency terms.It similarly boosted the attraction of procuring supplies from domestic sources.The sharp fall in Argentina’s lube consumption in recent months added to the attraction of procuring smaller volumes of base oils for more immediate consumption.The dynamic raised the prospect of boosting demand for domestic supplies even as total consumption fell.The rise in domestic base oils output duly tapped that pick-up in demand.Output of 14,500mᶟ (13,000t) in January rose from less than 6,500mᶟ the previous month to the highest since last July, government data showed.Rising domestic output, falling lube demand, and rising costs for overseas supplies in turn cut buying interest in shipments from markets like the US.Base oils imports typically accounted for more than 60pc of Argentina’s total base oils supply during the second half of last year.That share fell to less than 25pc in January.Argentina’s base oils imports of close to 4,000mᶟ in January fell from more than 9,000mᶟ the previous month to the lowest since last August.Shipments from the US continued to account for most of the imports, but for a much smaller total volume..Argentina’s January lube demand falls
Argentina’s base oils supply rose in January as domestic output rebounded to a six-month high.Higher output outweighed a fall in base oils imports to a five-month low.The diverging trends followed the sharp depreciation of the country’s currency versus the US dollar in December.The weaker currency increased the cost of imports in local currency terms.It similarly boosted the attraction of procuring supplies from domestic sources.The sharp fall in Argentina’s lube consumption in recent months added to the attraction of procuring smaller volumes of base oils for more immediate consumption.The dynamic raised the prospect of boosting demand for domestic supplies even as total consumption fell.The rise in domestic base oils output duly tapped that pick-up in demand.Output of 14,500mᶟ (13,000t) in January rose from less than 6,500mᶟ the previous month to the highest since last July, government data showed.Rising domestic output, falling lube demand, and rising costs for overseas supplies in turn cut buying interest in shipments from markets like the US.Base oils imports typically accounted for more than 60pc of Argentina’s total base oils supply during the second half of last year.That share fell to less than 25pc in January.Argentina’s base oils imports of close to 4,000mᶟ in January fell from more than 9,000mᶟ the previous month to the lowest since last August.Shipments from the US continued to account for most of the imports, but for a much smaller total volume..Argentina’s January lube demand falls