US base oils and lube demand fell to a four-month low in November even as the country’s domestic consumption slid to the second-lowest level on record.The more muted fall in total demand reflected a surge in US base oils and lube exports to the second highest on record.The trend highlighted the importance of US base oils exports in countering the impact of the sharp slowdown in the country’s base oils and lube consumption throughout last year.US base oils export prices moved to unusually competitive levels versus prices in other regions in the fourth quarter of last year, ICIS data showed.The prices remained competitive at the start of this year, raising the prospect of extending the large flow of US exports at least through the first quarter of the year.Domestic base oils and lube consumption of 1.64mn bl (231,000t) in November fell from close to 3mn bl in October and by 50pc from year-earlier levels.The fall in consumption extended a slump in domestic demand throughout last year and raised the prospect of a large build-up of surplus supplies.US refiners avoided that outcome through lower production and a surge in exports, including record-high volumes to Europe in November.Total demand, or domestic consumption and exports combined, still fell in November to a four-month low of 5.80mn bl.But the volume remained higher than the US’ total supply of 5.60mn bl that month.With demand exceeding supply for the fourth time in five months, US base oils and lube stocks extended their fall in November to the lowest level since the third quarter of 2022..US’ November base oils supply falls
US base oils and lube demand fell to a four-month low in November even as the country’s domestic consumption slid to the second-lowest level on record.The more muted fall in total demand reflected a surge in US base oils and lube exports to the second highest on record.The trend highlighted the importance of US base oils exports in countering the impact of the sharp slowdown in the country’s base oils and lube consumption throughout last year.US base oils export prices moved to unusually competitive levels versus prices in other regions in the fourth quarter of last year, ICIS data showed.The prices remained competitive at the start of this year, raising the prospect of extending the large flow of US exports at least through the first quarter of the year.Domestic base oils and lube consumption of 1.64mn bl (231,000t) in November fell from close to 3mn bl in October and by 50pc from year-earlier levels.The fall in consumption extended a slump in domestic demand throughout last year and raised the prospect of a large build-up of surplus supplies.US refiners avoided that outcome through lower production and a surge in exports, including record-high volumes to Europe in November.Total demand, or domestic consumption and exports combined, still fell in November to a four-month low of 5.80mn bl.But the volume remained higher than the US’ total supply of 5.60mn bl that month.With demand exceeding supply for the fourth time in five months, US base oils and lube stocks extended their fall in November to the lowest level since the third quarter of 2022..US’ November base oils supply falls