Canada’s base oils and lube output halted in May for the first time in years and contrasted with a rise in motor fuels production.Base oils and lube output had already fallen in April to a seven-month low of 18,840mᶟ (16,690t), government data showed..The sharp fall in production in April and May followed a sustained dip in Canada’s refined products output since the start of the year.Even so, production of diesel, gasoline and especially jet fuel has accounted for a growing share of the lower output.Unusually strong fuel prices relative to crude prices since early this year have incentivized refiners globally to maximise motor fuels output.The rising share of fuels output continued in May, along with higher total refined products output.The rise in total output contrasted with the pause base oils and lube production.The contrast suggested the impact of factors like plant maintenance work rather than moves to maximise middle distillates production at the expense of base oils.Canada’s base oils and lube production has typically fallen to much lower levels rather than completely halted during previous maintenance work in recent years.The impact of the drop in supplies was muted.Global Group III base oils supply has been more plentiful this year compared with the first half of last year. A raft of overlapping plant maintenance work took place during that time.The round of Group III maintenance work this year has been lighter and more spread out..Indonesia's March premium-grade exports fall.Even so, US premium-grade base oils imports from Canada fell in June to a four-month low..Canada April base oils/lube output falls
Canada’s base oils and lube output halted in May for the first time in years and contrasted with a rise in motor fuels production.Base oils and lube output had already fallen in April to a seven-month low of 18,840mᶟ (16,690t), government data showed..The sharp fall in production in April and May followed a sustained dip in Canada’s refined products output since the start of the year.Even so, production of diesel, gasoline and especially jet fuel has accounted for a growing share of the lower output.Unusually strong fuel prices relative to crude prices since early this year have incentivized refiners globally to maximise motor fuels output.The rising share of fuels output continued in May, along with higher total refined products output.The rise in total output contrasted with the pause base oils and lube production.The contrast suggested the impact of factors like plant maintenance work rather than moves to maximise middle distillates production at the expense of base oils.Canada’s base oils and lube production has typically fallen to much lower levels rather than completely halted during previous maintenance work in recent years.The impact of the drop in supplies was muted.Global Group III base oils supply has been more plentiful this year compared with the first half of last year. A raft of overlapping plant maintenance work took place during that time.The round of Group III maintenance work this year has been lighter and more spread out..Indonesia's March premium-grade exports fall.Even so, US premium-grade base oils imports from Canada fell in June to a four-month low..Canada April base oils/lube output falls
