US base oils imports rose to a two-year high in September on the back of a simultaneous jump in shipments from South Korea and the Middle East.The surge in imports preceded a seasonal slowdown in domestic demand in the fourth quarter of the year, raising the prospect of speeding up a build-up of surplus supplies.The dynamic increased pressure on US refiners to maintain high export volumes to slow any such build-up.Total base oils imports of 1.85 million barrels (260,000 tonnes) in September rose by 36% and for the third time in four months from year-earlier levels, government data showed.The volume was the highest since September 2022.More than 90% of the supplies originated from sources that are key producers of Group III base oils.Imports surged even as US Group III base oils prices slid to even steeper discounts to prices in Europe and Asia in the third quarter of the year.The low prices reflected the US market’s weak supply-demand fundamentals for Group III base oils.The surge in shipments in September raised the prospect of compounding that weakness and a build-up of surplus volumes heading into the fourth quarter of the year.Concern about rising surplus supplies put pressure on US refiners to maintain higher export volumes in the fourth quarter, at a time when overseas demand typically faces a seasonal slowdown.The steady fall in US Group II base oils export prices since September helped to facilitate more overseas shipments.Even so, the export volumes likely consisted mostly of Group II base oils.Such shipments would have little impact on the surge in Group III supplies in the US market.The rise in imports in September reflected a surge in shipments from the Middle East to a two-year high and from South Korea to the highest in almost five years..US September base oil/lube exports fall.Global premium-grade imports from Middle East rise in Aug.Europe’s Aug Group III supply rises
US base oils imports rose to a two-year high in September on the back of a simultaneous jump in shipments from South Korea and the Middle East.The surge in imports preceded a seasonal slowdown in domestic demand in the fourth quarter of the year, raising the prospect of speeding up a build-up of surplus supplies.The dynamic increased pressure on US refiners to maintain high export volumes to slow any such build-up.Total base oils imports of 1.85 million barrels (260,000 tonnes) in September rose by 36% and for the third time in four months from year-earlier levels, government data showed.The volume was the highest since September 2022.More than 90% of the supplies originated from sources that are key producers of Group III base oils.Imports surged even as US Group III base oils prices slid to even steeper discounts to prices in Europe and Asia in the third quarter of the year.The low prices reflected the US market’s weak supply-demand fundamentals for Group III base oils.The surge in shipments in September raised the prospect of compounding that weakness and a build-up of surplus volumes heading into the fourth quarter of the year.Concern about rising surplus supplies put pressure on US refiners to maintain higher export volumes in the fourth quarter, at a time when overseas demand typically faces a seasonal slowdown.The steady fall in US Group II base oils export prices since September helped to facilitate more overseas shipments.Even so, the export volumes likely consisted mostly of Group II base oils.Such shipments would have little impact on the surge in Group III supplies in the US market.The rise in imports in September reflected a surge in shipments from the Middle East to a two-year high and from South Korea to the highest in almost five years..US September base oil/lube exports fall.Global premium-grade imports from Middle East rise in Aug.Europe’s Aug Group III supply rises
