US base oils exports fell to a thirteen-month low in January, raising the prospect of a rise in surplus domestic supplies unless output fell.Exports of 1.56mn bl (220,000t) in January fell from 2.35mn bl the previous month and by 17pc from year-earlier levels, government data showed.The fall in shipments followed a sustained surge in base oils exports over the previous twelve months.The rise in shipments during that period helped to balance out a slump in the US’ domestic base oils demand and limited the size of a build-up of surplus supplies.The drop in base oils exports in January raised the prospect of compounding a rise in surplus supplies at the end of last year, when base oils output rose and domestic demand fell to a record low.US lube demand typically stays weak in the month of January as wintry weather curbs activity.Lower base oils output would help to balance out slow domestic demand and a drop in base oils exports.Signs of persistent availability of base oils export cargoes from the US so far this year suggested that any such change in output was insufficient to remove an overhang of surplus supplies.The drop in US base oils exports in January included a fall in shipments to Mexico to less than 380,000bl.The volume was the lowest in thirteen months.Exports to Mexico had already fallen to less than 500,000 bl/month in the fourth quarter of last year, from average levels of more than 700,000 bl/month in the first nine months of the year.Exports slowed in the fourth quarter after Mexico tightened regulations on base oils imports to prevent their use as a fuel-extender.The fall in shipments in January followed a sustained drop in the premium of US light-grade export prices to feedstock prices during the previous two months.The sliding base oil premium to VGO boosted the attraction for US refiners to redirect light-grade supplies back into the diesel pool..US’ Dec base oils/lube supply rises.US’ Dec base oils/lube demand mixed.Latin America’s Dec lube demand falls
US base oils exports fell to a thirteen-month low in January, raising the prospect of a rise in surplus domestic supplies unless output fell.Exports of 1.56mn bl (220,000t) in January fell from 2.35mn bl the previous month and by 17pc from year-earlier levels, government data showed.The fall in shipments followed a sustained surge in base oils exports over the previous twelve months.The rise in shipments during that period helped to balance out a slump in the US’ domestic base oils demand and limited the size of a build-up of surplus supplies.The drop in base oils exports in January raised the prospect of compounding a rise in surplus supplies at the end of last year, when base oils output rose and domestic demand fell to a record low.US lube demand typically stays weak in the month of January as wintry weather curbs activity.Lower base oils output would help to balance out slow domestic demand and a drop in base oils exports.Signs of persistent availability of base oils export cargoes from the US so far this year suggested that any such change in output was insufficient to remove an overhang of surplus supplies.The drop in US base oils exports in January included a fall in shipments to Mexico to less than 380,000bl.The volume was the lowest in thirteen months.Exports to Mexico had already fallen to less than 500,000 bl/month in the fourth quarter of last year, from average levels of more than 700,000 bl/month in the first nine months of the year.Exports slowed in the fourth quarter after Mexico tightened regulations on base oils imports to prevent their use as a fuel-extender.The fall in shipments in January followed a sustained drop in the premium of US light-grade export prices to feedstock prices during the previous two months.The sliding base oil premium to VGO boosted the attraction for US refiners to redirect light-grade supplies back into the diesel pool..US’ Dec base oils/lube supply rises.US’ Dec base oils/lube demand mixed.Latin America’s Dec lube demand falls