US base oils and lube exports held at more elevated levels in September even as they fell from the previous month.The firm export volumes raised the prospect of limiting a build-up of surplus supplies in the US in the third quarter of the year.Scheduled and some unexpected plant maintenance work in October then slowed further any build-up of surplus volumes at the start of the fourth quarter of the year.Total base oils and lube exports of more than 3.41 million barrels (481,000 tonnes) in September fell from more than 4.0 million barrels the previous month, government data showed.The volume still rose by 3% from year-earlier levels and lifted total shipments in the third quarter to almost 10.80 million barrels.The volume was a record-high for the third quarter of the year.Exports held firm in the third quarter even as domestic distributors and blenders moved to secure additional volumes to cover against any weather-related supply disruptions.The lack of any such disruptions then raised concern that the clear-out of those stocks could increase supply and further dampen demand in the fourth quarter of the year.The high export volumes likely limited the impact of any such moves.Base oils exports could get support from steadier demand in South America in the coming months following a sharp drop in US shipments to the region in September.A seasonal slowdown in lube demand in the region in the fourth quarter and the lack of any plant maintenance work raised concern about a large build-up of surplus supplies.Any sharp pick-up in US exports to the region would compound that build-up.US base oils exports of 320,000 barrels to South America in September instead fell from close to 490,000 barrels in August to a twenty-one-month low.The drop in shipments slowed the speed and size of any such supply-build in the region at the end of the third quarter.An extension of that slowdown in shipments in the fourth quarter would further limit the size of a supply-build.A smaller supply-build would speed up a subsequent recovery in buying interest ahead of a seasonal pick-up in demand in the first quarter of next year. .Latam lube demand set to recover in Q1.US’ August base oils supply falls
US base oils and lube exports held at more elevated levels in September even as they fell from the previous month.The firm export volumes raised the prospect of limiting a build-up of surplus supplies in the US in the third quarter of the year.Scheduled and some unexpected plant maintenance work in October then slowed further any build-up of surplus volumes at the start of the fourth quarter of the year.Total base oils and lube exports of more than 3.41 million barrels (481,000 tonnes) in September fell from more than 4.0 million barrels the previous month, government data showed.The volume still rose by 3% from year-earlier levels and lifted total shipments in the third quarter to almost 10.80 million barrels.The volume was a record-high for the third quarter of the year.Exports held firm in the third quarter even as domestic distributors and blenders moved to secure additional volumes to cover against any weather-related supply disruptions.The lack of any such disruptions then raised concern that the clear-out of those stocks could increase supply and further dampen demand in the fourth quarter of the year.The high export volumes likely limited the impact of any such moves.Base oils exports could get support from steadier demand in South America in the coming months following a sharp drop in US shipments to the region in September.A seasonal slowdown in lube demand in the region in the fourth quarter and the lack of any plant maintenance work raised concern about a large build-up of surplus supplies.Any sharp pick-up in US exports to the region would compound that build-up.US base oils exports of 320,000 barrels to South America in September instead fell from close to 490,000 barrels in August to a twenty-one-month low.The drop in shipments slowed the speed and size of any such supply-build in the region at the end of the third quarter.An extension of that slowdown in shipments in the fourth quarter would further limit the size of a supply-build.A smaller supply-build would speed up a subsequent recovery in buying interest ahead of a seasonal pick-up in demand in the first quarter of next year. .Latam lube demand set to recover in Q1.US’ August base oils supply falls
