Brazil’s base oil imports rose in March to a four-month high, coinciding with a revival in the country’s lube demand.
Base oil import of 74,130mᶟ (65,670t) in March rose by 51pc from 49,090mᶟ the previous month to the highest since November, government data showed.
But the recovery was relative. Imports fell for a fifth straight month from year-earlier levels, dipping in March by more than 50pc.
Imports of 174,780mᶟ in the first quarter were also 26pc lower than the last three months of 2021 and less than half year-earlier levels of 395,180mᶟ.
The slowdown in shipments had coincided with weaker lube demand in Brazil’s domestic market from the second half of last year.
The recovery in shipments in March came at a time when US producers were still clearing an overhang of surplus supplies from the previous year.
Those surplus volumes have now cleared. US base oil supply is instead now increasingly tight, while prices have surged.
The tighter availability in the US could complicate any pick-up in demand from Brazil for additional volumes if the recent rebound in lube consumption continues.
At the same time, the steady flow of US shipments to Latin America at the start of the year contrasted with a slowdown in exports to more distant markets like Europe and Africa.
The trend suggests that Latin America is taking priority over those more distant markets.
