US base oils exports fell to a nineteen-month low in July as refiners and distributors focused on building stocks to cover for any weather-related supply disruptions during the summer.Total base oils exports of 1.53 million barrels (216,000 tonnes) in July fell from 2.15 million barrels the previous month and by 31% from year-earlier levels, government data showed.The slide in shipments raised the prospect of a large supply-build at a time when already-weak domestic lube consumption faced a seasonal slowdown during the summer months.The speed of any such build-up could be more muted after US lubricants exports held firm in July, with an unusually large share of the supplies moving to Mexico.Total lube exports of 1.78 million barrels in July were similar to shipments of 1.80 million barrels in June and up 43% from year-earlier levels.The firmer lube shipments helped to support total US base oils and lube exports at more than 3.30 million barrels in July, down just 5% from year-earlier levels.Shipments of 1.57 million barrels of base oils and engine oils to Mexico in July were the highest in four months and far exceeded the country’s lubricants consumption.The dynamic pointed to contrasting signs about the state of the US market.The large shipments to Mexico pointed to ongoing volumes of surplus supplies to clear from the US market.Those moves contrasted with the slide in base oils exports to other overseas markets as refiners and distributors built up their inventory levels.Either way, the shipments slowed the pace of any build-up of surplus supplies in the US market.A slower build-up of surplus volumes curbed the urgency for any re-opening of the arbitrage to other markets.The closed arbitrage in turn continued to cut the attraction of moving more supplies to those other markets.Rising exports to Mexico in July contrasted with a slump in US base oils exports to Africa, including a fall in shipments to South Africa to a six-month low.Base oils exports to Singapore almost ground to a halt in July following a surge in shipments to that market since the end of last year..US’ June base oils supply rises.US’ June base oils/lube demand rises
US base oils exports fell to a nineteen-month low in July as refiners and distributors focused on building stocks to cover for any weather-related supply disruptions during the summer.Total base oils exports of 1.53 million barrels (216,000 tonnes) in July fell from 2.15 million barrels the previous month and by 31% from year-earlier levels, government data showed.The slide in shipments raised the prospect of a large supply-build at a time when already-weak domestic lube consumption faced a seasonal slowdown during the summer months.The speed of any such build-up could be more muted after US lubricants exports held firm in July, with an unusually large share of the supplies moving to Mexico.Total lube exports of 1.78 million barrels in July were similar to shipments of 1.80 million barrels in June and up 43% from year-earlier levels.The firmer lube shipments helped to support total US base oils and lube exports at more than 3.30 million barrels in July, down just 5% from year-earlier levels.Shipments of 1.57 million barrels of base oils and engine oils to Mexico in July were the highest in four months and far exceeded the country’s lubricants consumption.The dynamic pointed to contrasting signs about the state of the US market.The large shipments to Mexico pointed to ongoing volumes of surplus supplies to clear from the US market.Those moves contrasted with the slide in base oils exports to other overseas markets as refiners and distributors built up their inventory levels.Either way, the shipments slowed the pace of any build-up of surplus supplies in the US market.A slower build-up of surplus volumes curbed the urgency for any re-opening of the arbitrage to other markets.The closed arbitrage in turn continued to cut the attraction of moving more supplies to those other markets.Rising exports to Mexico in July contrasted with a slump in US base oils exports to Africa, including a fall in shipments to South Africa to a six-month low.Base oils exports to Singapore almost ground to a halt in July following a surge in shipments to that market since the end of last year..US’ June base oils supply rises.US’ June base oils/lube demand rises
