US base oils and lube supply fell in February as a slump in imports outweighed a recovery in domestic production.The lower supply curbed the prospect of a build-up of surplus volumes during the first quarter of the year.It also pointed to signs of a structural change in the country’s supply fundamentals as domestic refiners moved to tap and cover more of the country’s domestic demand.Supply fell even as US base oils and lube output rose to 4.85 million barrels (684,000 tonnes) in February, government data showed.The volume was up from 4.50 million barrels the previous month.Output rose mostly because of a sharp recovery in naphthenic base oils production.Output of naphthenic base oils had fallen close to a four-year low in January because of scheduled plant maintenance work.The recovery in output in February followed the completion of the maintenance work.A slump in US base oils imports to a thirty-one month low in February more than countered the recovery in domestic output.US base oils imports mostly consist of Group III base oils.Increasingly competitive prices for Group III base oils in the US domestic market curbed the attraction of moving more overseas supplies to the US.The US’ total base oils and lube supply, or output and imports combined, duly edged down to 5.81 million barrels in February, from 5.85 million barrels the previous month.Total domestic supply less exports came to 2.13 million barrels, down from 2.14 million barrels in January.Imports accounted for 45% of that domestic supply in February.The share fell from more than 56% of supply in 2023 to a thirteen-month low.Output from US domestic refiners duly accounted for a larger share of domestic supply, where Group III prices remained at a steep premium to prices for Group II export shipments..S Korea’s March exports fall to US, rise to Europe
US base oils and lube supply fell in February as a slump in imports outweighed a recovery in domestic production.The lower supply curbed the prospect of a build-up of surplus volumes during the first quarter of the year.It also pointed to signs of a structural change in the country’s supply fundamentals as domestic refiners moved to tap and cover more of the country’s domestic demand.Supply fell even as US base oils and lube output rose to 4.85 million barrels (684,000 tonnes) in February, government data showed.The volume was up from 4.50 million barrels the previous month.Output rose mostly because of a sharp recovery in naphthenic base oils production.Output of naphthenic base oils had fallen close to a four-year low in January because of scheduled plant maintenance work.The recovery in output in February followed the completion of the maintenance work.A slump in US base oils imports to a thirty-one month low in February more than countered the recovery in domestic output.US base oils imports mostly consist of Group III base oils.Increasingly competitive prices for Group III base oils in the US domestic market curbed the attraction of moving more overseas supplies to the US.The US’ total base oils and lube supply, or output and imports combined, duly edged down to 5.81 million barrels in February, from 5.85 million barrels the previous month.Total domestic supply less exports came to 2.13 million barrels, down from 2.14 million barrels in January.Imports accounted for 45% of that domestic supply in February.The share fell from more than 56% of supply in 2023 to a thirteen-month low.Output from US domestic refiners duly accounted for a larger share of domestic supply, where Group III prices remained at a steep premium to prices for Group II export shipments..S Korea’s March exports fall to US, rise to Europe
