Brazil’s base oils supply fell in August to levels that barely covered the country’s demand amid a drop in domestic production and imports.The dynamic highlighted the country’s reliance on base oils output and imports staying at higher levels to cover the sustained rise in domestic demand.That pressure could ease over the coming months, with Brazil’s lube demand usually facing a seasonal slowdown at year-end.Supply could also get a boost from shipments from the US, where a seasonal slowdown in demand is likely to leave refiners with rising surplus volumes to clear.Brazil’s base oils output of 48,000 cubic meters (43,000 tonnes) in August fell from more than 54,000 cubic meters in July to a three-month low, government data showed.The country’s output mostly held close to a 45,000-55,000 cubic meter/month range since the start of the year.The trend is likely to continue over the coming months, with no scheduled plant maintenance planned.Steady output would contrast with the final months of last year, when production slumped because of a heavy round of plant maintenance.Steadier output would in turn curb Brazil’s requirements for additional supplies from overseas markets.That would also contrast with the final months of last year, when the country's base oils imports surged to cover for the plant maintenance work.Brazil's base oils imports of close to 81,000 cubic meters in August remained higher than usual even as they slipped from more than 86,000 cubic meters the previous month.Brazil’s total supply, or domestic output and imports combined, duly fell to less than 129,000 cubic meters in August, from more than 140,000 cubic meters the previous month.The supply barely covered the country’s demand, extending a pattern of relative tightness throughout most of this year.A seasonal slowdown in demand in the coming months would ease the pressure on supply.At the same time, any unforeseen supply issues would keep surplus availability tight..Brazil’s August lube demand holds firm.US July base oils exports fall
Brazil’s base oils supply fell in August to levels that barely covered the country’s demand amid a drop in domestic production and imports.The dynamic highlighted the country’s reliance on base oils output and imports staying at higher levels to cover the sustained rise in domestic demand.That pressure could ease over the coming months, with Brazil’s lube demand usually facing a seasonal slowdown at year-end.Supply could also get a boost from shipments from the US, where a seasonal slowdown in demand is likely to leave refiners with rising surplus volumes to clear.Brazil’s base oils output of 48,000 cubic meters (43,000 tonnes) in August fell from more than 54,000 cubic meters in July to a three-month low, government data showed.The country’s output mostly held close to a 45,000-55,000 cubic meter/month range since the start of the year.The trend is likely to continue over the coming months, with no scheduled plant maintenance planned.Steady output would contrast with the final months of last year, when production slumped because of a heavy round of plant maintenance.Steadier output would in turn curb Brazil’s requirements for additional supplies from overseas markets.That would also contrast with the final months of last year, when the country's base oils imports surged to cover for the plant maintenance work.Brazil's base oils imports of close to 81,000 cubic meters in August remained higher than usual even as they slipped from more than 86,000 cubic meters the previous month.Brazil’s total supply, or domestic output and imports combined, duly fell to less than 129,000 cubic meters in August, from more than 140,000 cubic meters the previous month.The supply barely covered the country’s demand, extending a pattern of relative tightness throughout most of this year.A seasonal slowdown in demand in the coming months would ease the pressure on supply.At the same time, any unforeseen supply issues would keep surplus availability tight..Brazil’s August lube demand holds firm.US July base oils exports fall